According to the Association of Mutual Funds in India (AMFI), the Assets Under Management (AUM) of the Indian mutual fund industry came in at Rs. 21.41 lakh crore in October 2017 as against Rs. 20.40 lakh crore in September 2017. The assets of Equity funds (including ELSS) increased 46% YoY to climb past the 7 lakh crore mark for the very first time.
The total net inflow for October 2017 stood at Rs. 51,148 crore with the maximum inflow of Rs. 40,845 crore witnessed in the Income category. Equity (including Equity Linked Savings Schemes or ELSS), Balanced and Other ETFs saw inflows to the tune of Rs. 16,002 crore, Rs. 5,897 crore, and Rs. 1,675 crore, respectively.
Net inflows in Equity at Rs. 16,002 crore, up 70% YoY
In October 2017, Equity funds (including ELSS) witnessed monthly net inflow of Rs. 16,002 crore, a significant growth of 70% YoY. The net inflows in the category remained robust which can be attributed to the sustained interest of retail investors and mark to market gains. In the first seven months of FY 2018, cumulative inflows into these funds have tripled to Rs. 96,359 crore compared with Rs. 31,627 crore in the same period of the previous year.
However, net inflows in the Equity category (including ELSS) reduced by Rs. 4,360 crore in October 2017 from a life-time high of Rs. 20,362 crore witnessed in August 2017, which could be a cyclical impact as investors prefer to invest in physical gold during the festival months.
Folio count reaches 6.32 crore in Oct 2017, up 1.8% MoM
The total folio count at the end of October 2017 stood at 6.32 crore, 1.8% higher compared with September 2017, according to data from the Securities and Exchange Board of India (SEBI).
The growth was mainly driven by addition of 8.41 lakh new folios to the Equity category (including ELSS) and 1.85 lakh new folios to the Balanced category. However, folio count fell by 5,208 and 653 in Other ETFs and Fund of Funds investing overseas, respectively, from September-end levels.
B15 towns witness AUM growth of 39.3% YoY in Oct 2017
The country’s smaller towns or B15 (beyond top 15 cities) locations accounted for 17.9% of the total industry AUM at the end of October 2017. In the last 12 months, B15 towns have witnessed AUM growth of 39.3% to reach Rs. 3.9 lakh crore at the end of October 2017 compared with Rs. 2.8 lakh crore in the year-ago period.
Awareness campaigns by AMCs and AMFI have been the growth drivers. In October 2017, the share of direct plans in B15 towns stood at 20.9% against 45.9% in T15 cities.
A year since demonetisation, MF AUM grows 30%
AUM and inflows in the industry have witnessed growth of approximately 30% and 42%, respectively, in the post-demonetisation period since November 2016. Inflows in the Equity category (including ELSS) surged 76% and Balanced and Other ETFs grew nearly 52% over the same period amid low interest rates, good performance of equity, and unattractive returns from real estate.
Folios added to the Equity (including ELSS) and Balanced categories stood at 80.4 lakh and 18.4 lakh, respectively. Sensex experienced a return of nearly 25% over the period. AUM growth in B15 towns was nearly 39% as the cash-ban helped spur investments from smaller centres. T15 towns’ growth came in at 27% in the period.
Systematic Investment Plan (SIP) contribution has increased by 42% in September 2017 from November 2016.
