MF Data Snapshot: Total AUM at ₹31 lakh crore; SIP contribution grows
The mutual fund industry recorded an overall net inflow of ₹2,967.8 crore across all segments in December, led by outflows in equity and hybrid and a fall in inflows in debt-oriented schemes for the month under review.
The assets under management (AUM) of the mutual fund industry surged to its highest-ever at over ₹31 lakh crore in December-end from ₹30 lakh crore recorded in November-end.
As per the monthly data released by the Association of Mutual Funds of India (AMFI), the growth and equity-oriented schemes under the open-ended schemes registered net outflow of ₹10,147 crore in December against ₹12,917.3 crore in the previous month, even as the benchmark indices surged to record high levels during the last month of 2020.
All the fund category under the equity-oriented scheme saw sell-off in December except for the Sectoral/Thematic Fund (₹3,412 crore worth inflows) and the Dividend Yield Fund (₹1,490 crore worth inflows).
Large Cap funds witnessed the biggest outflow of ₹3,876 crore during the month, followed by Multi Cap fund with ₹3,549 crore outflows. Value/Contra fund, Mid Cap, Focused fund, Large & Mid Cap fund registered more than ₹1,000 crore worth outflows. The tax-saving Equity-linked savings scheme (ELSS) continued to record a net outflow for the fourth consecutive month at ₹1,274.9 crore from last month’s ₹804 crore outflow.
The chart below shows the equity flows of the last three months of 2020 i.e., October (₹-2,724.9 crore), November (₹-12,917.3 crore) and December (₹-10,147 crore). The equity-oriented mutual funds witnessed net outflows for the sixth straight month.
The income and debt-oriented schemes supported the overall AUM of the mutual fund industry by recording inflows in December at ₹13,862.7 crore, lower than November’s ₹44,983.8 crore worth inflows. Outflows worth ₹11,896 crore recorded in the Money market fund dragged the inflows of the overall debt schemes down. Corporate Bond fund and Overnight fund saw major inflows under the scheme, followed by Liquid fund and Short-duration fund.
Credit Risk Fund continued the outflows trend as it saw ₹190 crore of negative flows than the previous month’s ₹15.4 crore of sell-off.
Coming to the Hybrid schemes (mix of equity and debt), the scheme’s outflow in December came at ₹5,932.2 crore as compared to November’s outflow of ₹5,249.2 crore. The scheme was dragged by high redemptions in the Balanced Hybrid fund. Conservative Hybrid Fund was the only category under the scheme to have seen inflows for the month.
After registering the outflows for the first time since March of ₹141 crore in November, Gold exchange-traded funds (ETF) flows bounced back to the inflow trend as it recorded ₹430 crore inflows in December. Index funds continued to register outflows for the second straight month.
The chart depicts the total contribution made by systematic investment plans (SIPs) in the last six months. In December 2020, the SIP inflows grew to ₹8,418 crore as compared to ₹7,302 crore in December 2020, as investors chose continued to stick to SIPs as the preferred means of investing in mutual funds.
The total number of SIP folios/accounts saw a marginal jump to 3.47 crore during the month from 3.4 crore month-on-month (MoM).
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