Mutual Fund AUM Touches ₹ 60 Lakh Crore In May!

Mutual Fund AUM Touches ₹ 60 Lakh Crore In May!

– Equity Fund

Equity funds are a part of investment funds that are specifically intended to invest in stocks or equities laid out by the company.  Talking about the amount of Equity inflows, a total of Rs.19,000 crore in April 2024 were generated as compared to Rs.35,000 crore in May 2024 while the sectorial/thematic funds did lead the inflows in May, by receiving Rs.19,000 crore, a commendable  increase from its April accounts. Following them were flexi cap funds with Rs.3,000 crore, small cap funds with Rs.2,700 crore, and multi cap funds with Rs.2,600 crore. Large cap funds experienced net inflows of Rs.660 crore, almost doubled from Rs.350 crore in April.

– Debt Fund

Inflows dropped from Rs.1.89 lakh crore to Rs.42,000 crore, primarily because of reduced inflows into liquid funds. Liquid funds also suffered significant dip, with inflows crashing from Rs.1 lakh crore in April to Rs.26,000 crore in May. Money market funds and overnight funds followed, receiving Rs.8,000 crore and Rs.6,000 crore, respectively.

– Hybrid Fund

Hybrid funds stay close but drip by 2,000 crore from Rs.20,000 crore generated in April 2024, totaling to Rs.18,000 crore in May 2024. Except for conservative hybrid funds, all categories experienced net inflows. Within the hybrid funds, arbitrage funds led with net inflows of Rs.3,000 crore, closely followed by multi-asset allocation funds, which also saw net inflows of Rs.3,000 crore.

– Index and ETF

Unfortunately, Index funds saw a drastic drip in its input, dropping the amount to Rs.4,500 crore in May 2024 from its whooping Rs.6,500 crore in April. Conversely, net inflows into ETFs (including gold and other types) increased. As the Gold attracts! The Gold ETFs generated a whooping Rs.800 crore, while other ETFs brought in Rs.10,700 crore for their May 2024 list.

– Other important highlights

Around Mid May 2024, the mutual fund folio count significantly touched 18.16 crore, with retail folios in equity, hybrid, and solution-oriented schemes totaling  unto 14.89 crore. The SIP AUM was Rs.11.52 crore, with 8.75 crore total SIP accounts. Additionally, 49 lakh new SIPs were registered, and nine new schemes launched, raising Rs.10,140 crore.

Experts view

Manish Mehta, National Head of Sales, Marketing & Digital Business at Kotak Mahindra AMC, noted that record inflows were aided by NFO listings and investor actions during market volatility, with equity schemes being added through SIPs and lump-sum investments.

According to Mayukh Dutta, Chief Business Officer at ITI Mutual Fund, the increase was driven by a 119% growth in gross inflows into sectoral equity schemes, largely due to NFOs. On the debt side, net inflows were observed in liquid and money market categories, indicating a preference for low-duration schemes.