MF Update: Mutual fund assets touch a new high in April 2018

The Indian mutual fund industry has kick-started its new financial year with robust AUM growth. Despite of the volatility in the Indian equity markets, assets under management of the industry rose by 1.37 lakh crore to reach its all-time high of Rs. 23.25 lakh crore as per AMFI data.

The inflows into mutual funds were led by the liquid funds in the month of April 2018. The liquid funds witnessed inflow of Rs. 1.16 lakh crore during the month as against the outflow of Rs. 54,979 crore in the last month. The inflows into liquid funds seem to be affected by the investment of surplus funds by corporate companies at the beginning of the new financial year.

After a series of outflows in the recent past, the income funds have seen an inflow of Rs. 5,220 crore during the month. The inflows into the equity funds have also increased by Rs. 11,962 crore which aided the assets under management to reach Rs. 7.15 lakh crore for equity mutual funds, except ELSS.

During the month, inflows into the balanced funds have reduced to Rs. 3500 crore from Rs. 6754 crore down by ~48 per cent. This was mainly due to the introduction of dividend distribution tax in the union budget 2018. According to AMFI data, the inflows into the schemes have been normalised except balanced funds which are seeing a huge decline in inflows in the last couple of months.