The mutual fund (MF) industry’s asset base has crossed the Rs 19 lakh crore mark in April on the back of fresh inflows in equity, debt and money market segments. The assets under management (AUM) of the MF industry, comprising 42 players, rose to an all-time high of Rs 19.26 lakh crore at the end of April from Rs 17.55 lakh crore at the end of March, as per the data from Association of Mutual Funds in India (AMFI).
The industry’s AUM had crossed Rs 10 lakh crore in May 2014, and it is expected to reach Rs 20 lakh crore this year. Industry experts attributed the monthly rise in asset base to inflows in income and equity categories. Besides, buoyant investor sentiment and phenomenal growth in systematic investment plans (SIPs) also helped in the growth of assets under management.
“Indian investors have now eventually assimilated mutual funds and the credit goes to awareness programs and endeavours by regulators and Asset Management Companies (AMCs)in mutual fund industry,” Bajaj Capital CEO Rahul Parikh said. “Systematic investment plans (SIP) and Systematic Transfer Plan (STP) ways of investing have also given the investors a choice as well as flexibility of investing periodically or in lump sum as per their preference,” he added.
Overall inflow in MF schemes stood at Rs 1.51 lakh crore last month. Of this, income funds which invest in a combination of government securities saw inflow of Rs 34,647 crore. The liquid funds or money market category — with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon — witnessed an infusion of Rs 99,403 crore. Further, equity and equity-linked saving scheme (ELSS) saw an infusion of Rs 9,429 crore.
“The financial 2017-18 has seen a very good start in regard to mutual fund industry as April has seen a wonderful growth in net inflows in equity and debt. “Equity, Balanced, ELSS, Overseas categories have seen an almost 20 per cent hike in net inflows at Rs 16,525 crore in April as compared to Rs 14,123 crore in March,” Parikh said. Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. The funds are invested in stocks, bonds and money market instruments, among others.