Mutual fund industry AUM falls 8% to Rs 25 trillion in June quarter

Mutual funds’ asset base dropped 8 per cent to nearly Rs 25 trillion in the quarter ended June 30, because of outflow pressure on the equity and debt categories. Average asset under management (AAUM) of the industry, comprising 45 players, stood at Rs 24.82 trillion in April-June quarter 2020 as compared to Rs 27 crore in the preceding quarter, according to the data by Association of Mutual Funds in India.

The asset base of the industry was Rs 25.5 trillion in the same period a year ago. The industry registered the decline of 8 per cent on quarter-on-quarter basis as net inflows have reduced across most of the asset and categories in mutual fund schemes, said Omkeshwar Singh, head RankMF, Samco Securities.

"In spite of a 24 per cent climb back in the Nifty for the June quarter, fund's struggled to grow AUM - on account of outflow pressure both in debt and equity. While debt outflows were triggered by debt events such as the Franklin Templeton issue, profit booking on rally led to equity inflows.

"Besides, lower investment, with economic uncertainty threatening jobs and leading to pay cuts, could be the reason for decline in the assets base, moreover, fresh inflows were also relatively weak," Vidya Bala, co-founder of Primeinvestor.in, said.

All the top five fund houses, SBI MF, HDFC MF, ICICI Prudential MF, Aditya Birla Sunlife MF and Nippon India MF have witnessed decline in their respective average AUMs.

With an asset base of Rs 3,64,363 crore, SBI Mutual Fund continue to be the largest fund house in the country during the June quarter 2020. Although, average AUM of the fund house plunged from Rs 3,73,536 crore reported in the preceding quarter.

HDFC MF, which is at the second position, have seen a drop in its asset base to Rs 3,56,183 crore during the quarter under review from Rs 3,69,783 crore in March quarter.

This is followed by ICICI Prudential MF at the third rank with an average AUM of Rs 3,46,163 crore in June quarter. It had an average AUM of Rs 3,50,743.5 crore in March quarter.

Aditya Birla Sunlife MF, the fourth largest fund house, has seen its average AUM decreasing to Rs 2,14,592 crore from Rs 2,47,522 crore.

Nippon India MF, at fifth position, average AUM fell to Rs 1,80,061 crore from Rs 2,04,884 crore.