Asset under management (AUM) of Indian mutual fund industry continued to surge largely due to sharp inflows into income and equity schemes. According to the data from the Association of Mutual Funds in India (Amfi), AUM of Indian mutual fund industry stood at R17.89 lakh crore as on February 2017, compared to R12.62 lakh crore in the corresponding period of the previous year, registering a growth of 41.67%.
ICRA Online in its report on mutual fund stated that AUM of the mutual fund industry is nearing the R20 lakh crore mark and could cross this important milestone in 2017. As on February, assets of income schemes stood at R7.94 lakh crore, up by 39.13% compared to the same period of the previous year. While equity assets was at R4.63 lakh crore, a surge by 45.58% against the figure of the same period in the last financial year.
“Equity funds (including equity linked saving schemes) witnessed net flows of R6,462 crore in February 2017. This is the 11th consecutive month of net inflows. Retail participation in this category is high due to steady inflows vide the Systematic Investment Plan (SIP) route. In FY2017 so far, total inflow in this category has been R62,151 crore. The category is poised to end the financial year on a high note because of attractive valuations and investors looking for equity tax-saving options,”said the ICRA report.
In the last one year, gilt, gold exchange traded funds (ETFs) and fund of funds investing overseas saw fall in their AUM.
ICRA report also added that in the last 12 months, assets from B15 towns have grown 44.1% due to investor-friendly initiatives by regulators and campaigns by asset management companies (AMCs). Currently, B15 accounts for 16.7% of the total assets of the MF industry and the share of direct plans in B15 towns is only 23.4% against 46.2% in T15 cities.