Out of the net assets of Rs 13.22 lakh crore of debt AUMs, liquid funds have the highest share of 40%, followed by fixed term plans with 11% share and ultra-short duration funds with 7% share. Top eight debt schemes account for 85% share of the total net assets.
Assets Under Management (AUMs) of the mutual fund (MF) industry grew to Rs 25.47 lakh crore in August, where the industry registered growth of 7% over March this year, translating to an asset base addition of Rs 1.68 lakh crore within the initial five months of FY20. When compared with the previous month, the industry size grew by Rs 0.94 lakh crore.
AUMs of debt, equity and hybrid schemes at the end of Aug-19 stood at Rs 13.22, Rs 7.16 and Rs 3.38 lakh crore, respectively. Debt schemes accounted for the largest share of AUMs at 52%, followed by equity schemes with 28% and hybrid schemes with 13%. The remaining 7% was contributed by solution-oriented and other schemes.
Mobilisation by debt MFs
Out of the net assets of Rs 13.22 lakh crore of debt AUMs, liquid funds have the highest share of 40%, followed by fixed term plans with 11% share and ultra-short duration funds with 7% share. Top eight debt schemes account for 85% share of the total net assets. The remaining 15% comprises of eight schemes with net assets summing to Rs 1.84 lakh crore.
In August, debt schemes witnessed net inflows worth Rs 89,542 crore (including open-ended, close-ended and interval schemes). Among these, highest inflows were witnessed in liquid funds with Rs 79,428 crore.
Mobilisation by equity MFs
Out of the net assets of Rs 7.58 lakh crore of equity AUMs, the largest proportion is of large cap and multi cap funds with shares of 19% each, followed by ELSS with 12% share. The net assets of top nine equity schemes account for 95% of the net assets of equity AUMs.
Deployment of funds by debt MFs
The highest share (46.8%) of debt AUMs are in short term instruments with maturity of less than 90 days. This is followed by 32.6% share in long duration instruments with maturity of one year and above, 13.3% share in 182 days to one year and 7.4% share in 90 to 182 days. In August, largest proportion of funds of debt AUMs were parked in corporate debt paper of Rs 4.1 lakh crore. This segment includes floating rate bonds, non- convertible debentures, etc. Compared with previous month, assets in this category declined by Rs 1,137 crore over previous month and percentage terms declined to 27.9% of debt AUMs in Aug-19.
The second highest category with highest investments was Commercial papers with Rs 3.76 lakh crore. When compared with July 2019, this segment witnessed a fall of Rs 8,434 crore and percentage share dropped to 25.6% of debt AUMs.
Edited excerpts from CARE Ratings report