Mutual Funds: AUM hits a new high of Rs32.3 lakh cr in April 2021 rising by 34.8% yoy

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The Indian mutual fund industry recorded a new high of Rs32.3 lakh cr in asset under management (AUM) for April 2021, rising by 34.8% y-o-y and 2.7% m-o-m. Meanwhile, overall net inflows came in at Rs92,906cr in the month under review against an inflow of Rs45,999cr in April last year and an outflow of Rs29,745cr in March 2021.

In its research note, CARE Ratings said that the equity schemes had witnessed continuous net outflow from July 2020 to February 2021, which can be primarily attributed to profit-booking, however, continuing March’s trend, open-ended equity schemes have witnessed second consecutive monthly net inflows of Rs3,437 cr in April 2021.

While the open-ended debt mutual funds witnessed an inflow of Rs100,903 cr in April 2021 as compared with a net inflow of Rs43,432 cr in April 2020 (outflows of Rs52,528 cr in March 2021). On the other hand, close-ended debt mutual funds witnessed outflows of Rs23,559 cr in April 2021 compared with outflows of Rs9,119 cr in the previous year. Of that, Liquid funds witnessed an inflow of Rs41,507 cr in April 2021 (inflows of Rs68,848 cr in April 2020) and an outflow of Rs19,384 cr in March 2021.

In its concluding remark, CARE’s note said that the Indian Mutual Fund industry recorded a milestone at Rs32.3 lakh cr in April 2021, after witnessing a steep fall in AUM to Rs23.9 lakh cr in April 2020.

According to AMFI data, the Industry’s AUM has grown from Rs14.2 lakh cr as of April 30, 2016, to Rs32.3 lakh cr as of April 30, 2021, more than a two-fold increase in 5 yeaRs The industry’s AUM had crossed the milestone of Rs10 lakh cr for the first time in May 2014 and in a short span of about three years, the AUM size had increased more than two folds and crossed Rs20 lakh cr for the first time in August 2017. The AUM size crossed Rs30 lakh cr for the first time in November 2020

CARE’s note said, in a year, equity-oriented schemes have largely witnessed outflows as the investors had taken the opportunity to book profits and the category has witnessed redemptions/outflows of Rs22,523 cr from April 2020 to April 2021 and valuation gains have supported the rise in Equity AUM. On the other hand, debt-oriented funds have received net inflows of which the corporate bond fund and low-duration fund categories have received the maximum inflows that supported the overall growth in AUM.

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