 "mutual fund")
The Assets under Management (AUM) of the Indian mutual fund industry grew by nearly 19 per cent to touch Rs 46.63 lakh crore as of August 31, 2023, up from Rs 39.33 lakh crore as of August 31, 2022. Average Assets under Management (AAUM) of the industry stood at Rs 46.93 lakh crore for the month of August 2023, as against Rs 39.53 lakh crore in August 2022, according to data analysed by rating agency Icra Analytics.
"At the current levels, the industry is nearly halfway through its targeted aim of achieving an AUM of Rs 100 lakh crore over the next few years. The growth in AUM is supported by a sense of optimism among investors against the backdrop of the G20 summit successfully hosted by India, the country’s strong growth prospects moving forward and positive global cues," Icra said in a note.
Net inflows into equity-oriented schemes hit a five-month high of Rs 20,245 crore in August, up from Rs 7626 crore in July this year, according to data released by the Association of Mutual Funds in India (AMFI) on Monday.
"Equity saw inflows on the back of some marginal dip in Nifty in the month of August, which also acted as a consolidating point and a good value pick opportunity. Moreover, the trend of higher inflows from individual investors has been on the rise. Lastly, the comparative advantage position that India enjoys post-China slowdown, and Russia being sidelined, led to higher inflows. India's growth prospect remains strong," said Icra.
Among the growth/equity-oriented schemes, the small and mid-cap funds witnessed inflows to the tune of Rs 4,265 crore and Rs 2,512 crore respectively; sectoral/thematic funds saw net inflows of Rs 4,806 crore while value/contra fund saw inflows of Rs 1,365 crore. However, large-cap, focused and ELSS funds recorded net outflows of Rs 349 crore, Rs 471 crore and Rs 27 crore, respectively.
Among the top 25 schemes by AUM, the following reported the highest MoM increase, according to Motilal Oswal: Nippon India Small Cap Fund (+4.7% MoM change in NAV), Nippon India Growth Fund (+4.1% MoM), HDFC Small Cap Fund (+3.4% MoM), Kotak Emerging Equity Fund (+3.4% MoM), and Nippon India Multi Cap Fund (+3% MoM).
Top schemes by AUM, analysed by Motilal Oswal
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Debt mutual funds witnessed net outflows of Rs 25,873 crore in August as against net inflows of Rs 61,440 crore in July this year with nine out of 16 fund categories witnessing outflows during the month.
"With the festive season nearing, the fear of inflation rising has led to outflows apart from the uncertainty on interest rates and RBI’s stance to maintain an Arjuna-like focus on inflation," the rating agency said.
Total equity value for the top 20 AMCs increased 0.9% on a monthly basis (+22.1% YoY) in August 2023,. a 2.5% MoM decline (+8.4% YoY) for the Nifty.
Among the Top 10 funds, the highest monthly rise was seen in Mirae Asset Mutual Fund (+3.5%) followed by Nippon India Mutual Fund (+3.1%), DSP Mutual Fund (+1.8%), HDFC Mutual Fund (+1.6%), and ICICI Prudential Mutual Fund (+1.1%).
Trends in Top 20 MFs by equity value, as per Motilal Oswal
Note: Equity value represents the equity exposure of all MF schemes (including balanced and other schemes)
HSBC MF equity value for the previous month and year includes L&T MF value for comparability
Why debt funds saw net outflows?Debt mutual funds witnessed net outflows of Rs 25,873 crore in August as against net inflows of Rs 61,440 crore in July this year with nine out of 16 fund categories witnessing outflows during the month.
Outflows in Debt Mutual Funds in August – 23 in Rs. Crore
Sources: MFI360, IAL Research
"The Indian equity markets has been witnessing a rally backed by upbeat domestic macroeconomic data, a sense of optimism around India’s growth prospects and positive global cues. This rally in equity markets might have prompted investors to look at equity-oriented schemes. Moreover, we feel investors are adopting a wait and watch approach due to the current uncertainty over the direction of interest rates in the country. This could have led to the higher outflows from debt schemes," said Ashwini Kumar, Head Market Data, ICRA Analytics.
