Even as asset under management (AUM) of fund houses for May was above Rs 6 lakh crore, huge redemption was seen in the income and liquid schemes, while good amount of inflows were seen in the equity schemes. This came in the backdrop of improved market condition in the past few months.
As per data available from Association of Mutual Funds in India (Amfi), combined net inflows into all the fund houses of the country was at Rs 30,148 crore in May, down from Rs 1,54,192 crore at the end of April. While the redemptions in income and liquid funds were high, this category still managed to have positive net inflows. In fact income funds recorded the highest net inflow of Rs 28,114 crore in the month of May. And towards the end, the equity funds too caught up and have recorded a net inflow of Rs 1,903 crore in May. The month of April had seen a negative flow in equity funds to the tune of Rs 196 crore.
A senior officials from the leading fund house on the condition of anonymity said, ?Several corporate houses had parked money in the income and liquid schemes in April. But improved market condition in the last few weeks, huge inflows was seen in the equity schemes, while corporate houses bough their money out from the income and liquid schemes.?
However, the mutual fund industry saw its average assets under management (AAUM) breaching the record Rs 6,00,000-crore level, an increase of Rs 87,829.87 crore, or 16% , over the previous month. The combined average AUM of the 35 fund houses in the country increased to Rs 6,39,129.82 crore in May compared to Rs 5,51,299.95 crore in April. Mutual funds have increased their investments in the equity market over the past two months. The fund houses have put over Rs 2,291 crore in equities in May. This is because the AUM number is calculated based on the asset prices and also the inflows. And, with equity markets staging a strong comeback with over 20% growth, the asset values have climbed and so has the AUM number.