MF update: July 2020 AUM at Rs 27.11 lakh crore
The asset under management (AUM) of the domestic mutual fund industry has increased by 6.4 per cent on a monthly basis to Rs 27.11 lakh crore for the month of June 2020. The increase in AUM was primarily driven by a rise in the asset under management of fixed income dedicated funds. It has increased by more than eight per cent on a month-on-month basis. At the end of July 2020, the total AUM of debt-oriented funds was at Rs 12.63 lakh crore as compared to Rs 11.63 lakh crore at the end of June 2020.
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Particulars (Rs Cr)
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Jul-20
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Jun-20
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Change
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Total AUM
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27,11,894.09
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25,48,848.43
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6.40%
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Debt AUM
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12,63,852.11
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11,63,023.49
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8.67%
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Equity AUM
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7,37,608.12
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7,01,016.04
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5.22%
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The equity dedicated fund too saw a rise in the AUM from Rs 7.01 lakh crore to Rs 7.37 lakh crore. The rise in equity AUM is due to an increase in the overall equity market. In the month of July, BSE 500 has gained as much as five per cent and Sensex by six per cent. It is the first time after March 2016 that the net inflows into equity dedicated funds are negative. Gross inflows have remained intact and also, increased by three per cent sequentially. Nonetheless, what led to negative net inflows is the 23 per cent increase in redemption. As markets saw a rally of more than 50 per cent from their recent lows, many investors preferred to book profit, which led to a rise in the redemption. Multi-cap fund, mid-cap, and value funds saw a net outflow of Rs 1,033 crore, Rs 579 crore, and Rs 548 crore, respectively in the month of July 2020. Focussed and tax savings funds are the only categories among equity that saw net inflows to the tune of Rs 534 crore and Rs 279 crore, respectively.
Hybrid funds that invest in both equity and debt are another category that saw negative net inflows. Even this category saw a huge redemption to the tune of Rs 14,396 crore. All the sub-categories that saw a net outflow and the largest outflow were from the Arbitrage funds.
Under the debt category, credit risk funds continue to see net outflow and for the month of July 2020, there was net outflow to the tune of Rs 669 crore. All the categories saw inflows except for the credit risk funds.
Inflows into exchange-traded funds (ETF) continue to saw good traction and for the month of July 2020, it saw net inflows of Rs 14,265 crore, which is up by almost 200 per cent on a sequential basis.