MF update: August 2020 AUM at Rs 27.49 lakh crore
The asset under management (AUM) of the domestic mutual fund industry has increased marginally by 1.4 per cent on a monthly basis to Rs 27.49 lakh crore for the month of August 2020.
The increase in AUM was primarily driven by a rise in the asset under management of equity dedicated funds. It has increased by a little more than four per cent on a month-on-month basis. At the end of August 2020, the total AUM of equity-oriented funds was at Rs 7.69 lakh crore compared to Rs 7.37 lakh crore at the end of July 2020. The increase in the AUM was primarily led by an increase in the overall market cap of the equity market.
For example, Nifty saw an increase of 3.5 per cent in the month of August. This is the second consecutive month when the equity dedicated fund has witnessed a net outflow. Even in the month of July 2020, there was an outflow to the tune of Rs 2,480 crore. The net outflow was led by the large-cap dedicated fund that saw an outflow of Rs 1,553 crore. Except for the ELSS and sectoral/thematic category, all other major categories saw an outflow in the month of August 2020. Gross inflows have remained intact and increased by three per cent sequentially. Nonetheless, what led to the net outflows is an 11 per cent increase in redemption. This shows that the investors have continued with their profit booking and at the same time, new investors are also entering the market.
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Particulars (Rs lakh cr)
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Jul-20
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Jun-20
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Change (per cent)
|
|
Total AUM
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27.49
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27.11
|
1.4
|
|
Equity AUM
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7.69
|
7.37
|
4.3
|
|
Debt AUM
|
12.6
|
12.63
|
-0.2
|
The debt-oriented fund too saw a decline in the AUM from Rs 12.63 lakh crore in the month of July to Rs 12.60 lakh crore in the month of August. The credit risk fund continued with net outflow albeit at a lower rate.
Hybrid funds that invest in both equity and debt are another category that saw continued negative net inflows. Even this category saw a huge redemption to the tune of Rs 4,819 crore. All the sub-categories saw net outflow, except for the multi-asset allocation funds.
Inflows into the exchange-traded funds (ETF) continued to witness good traction and for the month of August 2020, it saw net inflows of Rs 3,187 crore.
Inflows through SIP also saw a marginal dip from Rs 7,831 crore in the month of July 2020 to Rs 7,791 crore in August 2020.