Asset base of equity mutual funds (MFs) surged 16 per cent to Rs 3.57 lakh crore in April as retail investors poured money into these schemes. The industry’s equity assets under management (AUM) rose to Rs 3.57 lakh crore last month as against Rs 3.06 lakh crore in April last year, according to latest data available with Association of Mutual Funds in India (AMFI).
In March this year, the asset base of equity MFs stood at Rs 3.45 lakh crore. Despite over 5 per cent slump in the benchmark BSE Sensex in last one year, investors pumped in over Rs 78,000 crore into equity schemes.
Retail participation has shown a remarkable resilience to market volatility last fiscal, experts noted. In April, equity and equity-linked saving schemes saw an infusion of Rs 4,438 crore, highest in 5 months. This was the highest net inflow since November, when equity mutual funds witnessed an inflow of Rs 6,379 crore.
Market experts attributed the rise in inflow to investment in systematic investment plans (SIPs) and strong participation from retail investors. SIP is an investment vehicle that allows investors to invest in small amounts periodically instead of lump sums. The frequency of investment is usually weekly, monthly or quarterly.
Total inflow in equity schemes has helped the 43 mutual funds reach Rs 14.22 lakh crore in AUM at the end of last month, from Rs 11.86 lakh crore till April 2015. MFs are investment vehicles made up of a pool of funds collected from a large number of investors for the purpose of investing in stocks, bonds, money market instruments among others.