The quarterly average assets under management (AUMs) of Indian mutual fund industry totalled Rs 25.51 lakh crore at the end of Q1 FY20 (April to June) as against Rs 24.48 lakh crore at the end of Q4 FY19 (January to March), according to the Association of Mutual Funds in India (AMFI).
However, the industry saw net outflows of Rs 1.6 lakh crore in June as against net inflows of Rs 76,990 crore in May. The downside came as income and debt oriented schemes -- including close-ended and interval schemes -- saw net outflows of Rs 1.74 lakh crore in June as against net inflows of Rs 67,930 crore in the previous month.
The rise in net outflows likely reflects redemptions at quarter-end as corporates usually tend to redeem their investments to meet the advance tax payment deadline.
AMFI said total AUMs of the mutual fund industry in June were to the tune of Rs 24.25 lakh crore as against Rs 25.94 lakh crore in the previous month and Rs 22.86 lakh crore in June 2018.
AUMs for the income and debt oriented category fell 12.92 per cent month-on-month to Rs 11.55 lakh crore. Meanwhile, AUM under the equity category, including equity linked savings schemes (ELSSs) -- including close ended and interval schemes -- came in at Rs 7.58 lakh crore in June 2019, down 0.14 month-on-month but up 3.72 per cent year-on-year.
Under the income and debt oriented schemes, liquid funds saw the maximum net outflows of Rs 1.52 lakh crore in June as against net inflows of Rs 68,583 crore in May. Fixed term plans registered net outflows of Rs 2,361 crore as against net outflows of Rs 1,798 crore in May.
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Net inflows of Rs 241.3 crore in June as against net outflows of Rs 105.74 crore in May under Gilt funds (including Gilt Fund with 10-year constant duration) reflect Reserve Bank of India's (RBI) stance to lower interest rates, according to AMFI.
The surge in inflows in equity funds (including ELSS and close-ended schemes) came as a sigh of relief for the industry. After increasing 17.47 per cent month-on-month in May, inflows in equity funds -- including ELSS and close-ended schemes -- surged 48 per cent month-on-month to Rs 7,367 crore in June.
AMFI said political stability, lower inflation and RBI's dovish stance have led to the upside. ELSS continue to take the top position in terms of folios under growth and equity oriented schemes.
The number of folios under growth and equity oriented schemes were highest in ELSS (14.44 per cent) of total) funds followed by large cap funds (10.58 per cent of total) and multi cap fund (10.09 per cent of total) in June 2019.
Notably, according to AMFI, the top five categories in terms of folios under growth and equity oriented schemes (ELSS, large cap fund, multi cap fund, sectoral and thematic funds and mid cap fund) accounted for 50.1 per cent of the industry folios.
Meanwhile, under the income and debt oriented schemes, liquid funds topped the chart in terms of number of folios followed by low duration funds.
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