MF Data Snapshot: Equity Flows Revive In December; SIPs At All-time High
Indian mutual fund industry’s average assets under management (AUM) at an all-time high, SIPs contribution touch record high, equity flows jump 3.4x than the previous month. Indian mutual fund industry revived in December after a decline in the previous three months.
The AUM of the industry as on December 31, 2019, stood at ₹26,54,075 trillion. From ₹6.65 trillion as on December 31, 2009, to ₹26.54 trillion, the AUM has witnessed a 4-fold increase in a span of 10 years.
As per data by the Association of Mutual Funds of India (AMFI), the growth and equity-oriented schemes net inflow for the month of December stood at ₹4,499 crore against ₹1,311 crore a month ago. Equity-linked savings scheme (ELSS) contributed ₹479 crore, nearly 67% increase as compared to ₹287 crore in November.
The stock market hitting record-high levels during the month helped investors drive their money into equity schemes accordingly.
The side chart shows the equity inflows of three months i.e., October (₹6,026 crore), November (₹1,311.6 crore) and December (₹4,499 crore). From declining 78% in November to rising 3.4x in December, it surely was the robust inflow month for equities.
Talking about the income and debt-oriented schemes, the total net outflow of the scheme stood at ₹-78,426 crore against inflow of ₹51,427 crore in the previous month. Liquid fund’s contribution impacted the overall scheme as the fund registered an outflow of ₹-71,158 crore in December versus ₹6,938 crore inflow it registered in the month of November.
Hybrid schemes, on the other hand, continued to witness the outflow trend. Net outflow of the scheme came at ₹-1,183 crore from ₹-572 crore a month earlier.
Investors pumped in ₹26 crore in Gold exchange-traded funds (ETF) in December 2019 against ₹7.6 crore infused in the previous month, AMFI data showed.
The chart depicts the total contribution made by systematic investment plans (SIPs) in the last six months. December 2019 was a turnaround month for the mutual fund industry as the SIP contribution hit a record high of ₹8,518 crore.
9.62 lakh new SIP accounts were created in the month taking the total mutual fund SIPs accounts to 2.98 crore as on December 31, 2019.
