Average assets under management (AAUMs) of the mutual fund industry touched an all-time high of Rs 14.19 lakh crore in the April-June quarter. Despite intense volatility in the equity markets in June, investors continued to invest in equity mutual funds, says industry participants.
According to the data from the Association of Mutual funds in India (Amfi), total AAUMs of 44 fund houses stood at Rs 14.91 lakh crore in the April-June quarter, up by 5%. The total AAUMs of the mutual fund industry for the January-March quarter was Rs 13.53 lakh crore.
Top ten funds saw their assets rise in the range of 1-12%, while ICICI Prudential Asset Management Company (AMC) continued its pole position at Rs 1.93 lakh crore. AUMs of HDFC AMC, which was at the second spot, were Rs 1.92 lakh crore in April-June quarter.
Milind Barve, MD at HDFC AMC, said, “I think industry has been able to reach here is due to continuous participation from retail investors. We have seen sustain flows from retail investors through systematic investment plan (SIPs) in the past few years.”
Industry participants say total SIP folios have crossed 1 crore mark and SIPs’ inflow volume now stands at Rs 3,000-3,500 crore on a monthly basis from Rs 2,500 crore a year earlier.
Some of the smaller fund houses such as Baroda Pioneer MF, IDBI MF and Peerless MF saw their AAUMs
decline in the April-June quarter.
“As we have seen in the past many months, equity mutual funds have continued to put in money and domestic investors are now mainstay of the market,” said Barve.
In the previous financial year, despite some volatility in the equity markets, equity mutual funds which also include equity-linked saving schemes (ELSS), saw net inflows of Rs 74,024 crore. In FY16, the Sensex was down by around 9.4%, weighed down by global slowdown concerns and muted earnings growth of India Inc.
Market participants are expecting that they will continue to get inflows in equity funds. “Though the numbers for the June are not out, we expect positive inflows even as there were uncertainties from domestic as well as international markets. The mutual fund industry will continue to grow at a steady rate in the next two-three years,” said the CEO of a top fund house.