Mutual funds' asset base rises 4 per cent in August to Rs. 25.47 trillion

Mutual funds' asset base increased to Rs 25.47 trillion (US$ 364.4 billion) in August, a rise of 4 per cent as compared with the preceding month, on the back of robust inflows in equity and liquid schemes.

The 44-player industry logged an assets under management (AUM) of Rs 24.53 lakh crore (US$ 350.98 billion) in July-end, according to data from the Association of Mutual Funds in India (AMFI).

Mutual fund houses witnessed an overall inflow of Rs 1.02 trillion (US$ 14.59 billion) last month, much higher than Rs 87,000 crore (US$ 12.45 billion) seen in July. Of these, liquid funds alone witnessed an impressive over Rs 79,000 crore (US$ 11.30 billion) in August.

Fund managers attributed growth in asset base to higher retail participation and robust inflows in equity schemes and liquid funds.

Open-ended equity schemes witnessed an infusion of Rs 9,152 crore (US$ 1.31 billion), while there was a small outflow of Rs 62 crore (US$ 8.87 million) in close-ended equity plans, taking total equity inflows to Rs 9,090 crore (US4 1.30 billion) last month. In July, net inflow in such schemes stood at Rs 8,092 crore (US$ 1.16 billion).

Among debt-oriented schemes, liquid funds saw an infusion of Rs 79,428 crore (US$ 11.36 billion) in last month as compared to Rs 45,441 crore (US$ 6.50 billion), in July.
Besides, gold exchange-traded funds saw a total inflow of Rs 145 crore (US$ 20.75 million) against an outflow of Rs 17.66 crore (US$ 2.53 million).

Retail investor interest in equity mutual funds, for the fourth time in succession, continues to be steady, displaying maturity, despite uncertain economic and volatile market situation.

"Net inflows, largely in all categories of equity funds, especially in small and mid-cap funds, as also in the ELSS (equity-linked saving scheme) segment, signify heightened confidence and interest in emerging businesses and disciplined tax planning," AMFI Chief Executive Officer N S Venkatesh said.

Speaking on the outlook for September, Venkatesh said that on the equity side, SIPs (systematic investment plans) would witness robust flows and on debt side, liquid funds may see volatility owing to quarter-end phenomenon.

Inflows in mutual funds (MFs) through SIPs in August stood at Rs 8,231 crore (US$ 1.18 billion), a slight fall as compared with Rs 8,324 crore (US$ 1.19 billion)  a month ago.

The MF industry added 4.81 lakh folios -- numbers designated to individual investor accounts, though an investor can have multiple accounts -- last month to a total of 8.53 crore (US$ 1.19 million).

MFs are investment vehicles made up of a pool of funds collected from a large number of investors.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.