MF Update: August 2021 AUM at Rs 36.59 lakh crore

The asset under management (AUM) of the domestic mutual fund industry increased by 3.61 per cent on monthly basis to Rs 36.59 lakh crore for the month of August 2021. The increase in AUM was driven by an increase in the asset under management of equity and hybrid categories. 

Hybrid funds witness surge

Hybrid funds saw a major increase in their AUM by 6.36 per cent on sequential basis. For equity-oriented schemes, it has increased by a huge 5.32 per cent on a month-on-month basis. The reason for such an increase in the AUM was a better mark to market gain and higher inflows. 

Good gains on Nifty 50

In the month of August 2021 Nifty 50 gained more than seven per cent. Most of the sub-categories of equity MF saw an outflow. The sub-categories that saw major inflow was Focused and Flexi-cap that saw an inflow of Rs 3072 crore and Rs 4741 crore respectively. One of the reasons for such a sharp jump in inflow in this category was NFO that garnered around Rs 2500 crore and Rs 3500 crore respectively. 

The net inflow in the month of August 2021 in equity category was to the tune of Rs 8666 crore. At the end of August 2021, the total AUM of equity-oriented funds was at Rs 12.33 lakh crore compared to Rs 11.70 lakh crore at the end of July 2021. 

Overall August 2021 run

Debt dedicated fund for the month of August 2021, saw net inflows to the tune of Rs 1074 crore. Overnight funds and low duration bond funds saw major outflow in the month of August 2021 while corporate bond funds and floater funds saw major net inflows in the month of August 2021.  

Hybrid funds saw net inflows in the month of August 2021 to the tune of Rs 18705 crore and within hybrid funds, it was Dynamic Asset Allocation/Balanced Advantage Fund that saw major inflows to the tune of Rs 16570.97 crore. Passively managed funds such as ETF and index funds witnessed good traction and for the month of August 2021. It saw net inflows of Rs 11591 crore.