MF Update: September 2020 AUM at Rs 26.86 lakh crore

The asset under management (AUM) of the domestic mutual fund industry has declined by 2.3 per cent on a monthly basis to Rs 26.86 lakh crore for the month of September 2020.

The decline in AUM was primarily driven by a decline in assets under management of debt-oriented schemes. It has declined by a little more than 3.5 per cent on MoM basis. This is the third consecutive month of decline in debt-oriented funds. At the end of September 2020, the total AUM of debt-oriented funds was at Rs 12.13 lakh crore compared to Rs 12.61 lakh crore at the end of August 2020. The decline in the AUM was primarily led by the outflow from liquid funds, which saw an outflow of almost Rs 66,000 crore. The credit risk fund continued with net outflow albeit at a lower rate along with the money market fund and ultra-short duration fund.

Equity dedicated fund saw the third consecutive month of net outflow. For the month of September 2020, the total outflow was to the tune of Rs 734.4 crore. It is a sharp drop from Rs 4,000 crore of net outflows that were witnessed in the month of August 2020. Even in the month of July 2020, there was an outflow to the tune of Rs 2,480 crore.

The net outflow is led by a multi-cap dedicated fund that saw an outflow of Rs 1,143 crore, followed by large-cap dedicated funds that saw a net outflow of Rs 576 crore.  Except for the focussed and large & mid-cap category, all other major categories saw an outflow in the month of September 2020.

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 4,219 crore in the month of September 2020. All the sub-categories saw net outflow, except for the multi-asset allocation funds and the Conservative Hybrid Fund. 

Inflows into ETF continued to see good traction and for the month of September 2020, it saw net inflows of Rs 3,515 crore.