MF Update: July 2021 AUM at Rs 35.31 lakh crore

The asset under management (AUM) of domestic mutual fund industry has increased by 4.9 per cent on monthly basis to Rs 35.31 lakh crore for the month of July 2021. The increase in AUM was driven by an increase in assets under management of all the major categories. Hybrid funds saw a major increase of 6.27 per cent on a sequential basis. For equity-oriented schemes, it has increased by a huge 5.48 per cent on a month-on-month basis. The reason for such an increase in the AUM was a better mark for market gain and higher inflows. In the month of July 2021, Nifty 500 gained almost 2 per cent. All the categories of equity MF saw an inflow except for the ELSS and value fund. The inflow has increased to Rs 22,583.22 crore in the month of July 2021 compared to the inflow of Rs 5,988 crore in the month of June 2021. One of the reasons for such a sharp jump was a Flexi-cap NFO that garnered around Rs 10,000 crore. For the month of July, the Flexi-cap category received an inflow of Rs 11,508 crore. At the end of July 2021, the total AUM of equity-oriented funds stood at Rs 11.70 lakh crore compared to Rs 11.10 lakh crore at the end of June 2021. 

Debt dedicated funds for the month of July 2021, saw net inflows to the tune of Rs 73,694 crore. Corporate bond funds and medium to short-duration bond funds saw major outflow in the month of July 2021 while liquid funds, as well as money market funds, saw major net inflows in the month of July 2021.   

Hybrid funds saw net inflows in the month of July 2021 to the tune of Rs 19,481 crore and within hybrid funds, it was arbitrage funds that saw a major inflow to the tune of Rs 14,924 crore. Passively managed funds such as ETF and index funds continue seeing good traction and for the month of July 2021, it saw net inflows of Rs 10,084 crore.  

Inflows via SIP also increased for the month of July 2021 and stood at Rs 9,608 crore.