Mutual Fund Update: January 2020 saw mutual fund AUM crossing Rs 28 lakh crore

The domestic mutual fund industry finally saw their assets crossing Rs 28 lakh crore in the month of January 2020. The average net assets under management (AAUM) for the month of January 2020 remained at Rs 28.18 lakh crore against Rs 27.25 lakh crore in the month of December 2019.

The increase in AUM was led by increase in the AUM of income or debt oriented schemes.  They saw their AUM increasing by 4.03 per cent on sequential basis.  Income and debt oriented schemes that form 45 per cent of total domestic AUM saw their asset size increasing by 4.03 per cent.  Even within debt or income category, it is liquid category that saw highest inflow of Rs 59,682 crore against an outflow of around Rs 71,158 crore during December 2019. December being the quarter end, many corporates withdraw money for their liquidity requirement.  In the month of December 2019, Debt and Income category saw an outflow of Rs 78,000 crore against inflow of Rs 1.09 lakh crore in the month of January 2020.

The pure equity oriented schemes that forms around 28 per cent of the total mutual fund assets grew by 3.24 on monthly basis. The asset base increased to Rs 7.87 lakh crore in the month of January 2020 from Rs 7.62 lakh crore in the month of December 2019. All sub-categories in the equity dedicated mutual fund saw an inflow except for Value Fund and Dividend Yield fund. Multi-cap and mid-cap fund saw highest inflow to the tune of Rs 1,722 crore and Rs 1,798 crore respectively.  Better equity market performance has helped to attract net inflow of Rs 7,877 crore, which is highest in last three months.