Domestic MF industry's average AUM grew 19% to Rs 38.37 trn in FY22

The average assets under management (AAUM) for the domestic mutual fund (MF) industry grew 19.5 per cent from Rs 32.1 trillion in March 2021 quarter to Rs 38.4 trillion during the March 2022 quarter.

Strong inflows into equity and hybrid schemes coupled with sustained inflows through systematic investment plan (SIP) contributed to the growth in assets.

SBI MF continued its dominant position with AAUM of Rs 6.47 trillion compared to Rs 5 trillion in Jan-March 2021, a growth of 28.27 per cent. HDFC MF slipped to third position with AAUM of Rs 4.32 trillion, while ICICI Prudential MF climbed to the second position with assets at Rs 4.68 trillion.

Among the top 10 fund houses, Axis MF saw the highest percentage growth in assets at 32 per cent. Nippon India MF, Kotak Mahindra MF and UTI MF managed to clock industry-beating growth rates, an analysis of data provided by Association of Mutual Funds in India (Amfi) showed.

Jimmy Patel, MD and CEO at Quantum AMC says, “Despite unstable equity markets in the last quarter, the assets of the industry have risen as confidence of investors have not come down. The biggest takeaway is the robust SIP book which has continued to grow in the current financial year.”

During the March 2022 quarter, the S&P BSE Sensex Index went up marginally by 0.54 per cent, while S&P BSE Mid Cap Index and S&P BSE Small Cap Index fell 3.45 per cent and 4.22 per cent, respectively.

Investors have continued to invest in equity and hybrid funds despite intense volatility in the markets due to the Russia-Ukraine war and outflows from the foreign portfolio investors (FPIs).

In January and February of 2022, equity funds saw net inflows of around Rs 34,500 crore. While inflows through systematic investment plans (SIPs) stood at nearly Rs 22,955 crores in the first two months of the current calendar year. On the other hand, hybrid funds also saw net inflows of around Rs 9,400 crore in January and February of this year.   

Overall, fund houses such as Quant MF, Edelweiss MF, Canara Robeco MF, Sundaram MF among others saw sharp increase in its AAUM. Officials in the MF industry say that fund houses having a strong track record of performance have continued to see inflows in their funds.

“Earlier investors used to invest in schemes of top fund houses, but new age investors are willing to diversify their investments into schemes from mid-size and small-size fund houses based on its performance,” said an official in the industry.