Mutual Fund Folios Continue To Grow, Industry AUM Reaches Rs 44.39 Lakh Crore In June: AMFI

The mutual fund industry’s net asset under management (AUM) increased to Rs 44.39 lakh crore in June from Rs 43.20 lakh crore in the previous month, even as the MF folios continued to grow amid positive market sentiments, data from the Association of Mutual Funds in India (AMFI) showed.

The average asset under management (AAUM) of the MF industry was Rs 44.82 lakh crore in June 2023. On the other hand, the mutual fund folios reached around 14.91 crore from about 14.73 crore in the prior month.

Commenting on the data, AMFI CEO N.S. Venkatesh, in a press release, said that the mutual fund industry’s AUM is at one of its highest levels to date. “The impressive increase of 29 per cent in retail AUM on an annualised basis and 25 per cent in AAUM indicates a positive trend of net retail inflows.” 

While the inflows into equity schemes have been encouraging, inflows into small-cap have been at an all-time high. Venkatesh said the fund houses’ “commitment to investor awareness, transparency, and comprehensive disclosure and factsheets” helped build investors’ trust. He adds that “the impressive performance of corporate earnings further strengthens the case for investing in India.” He says that the record-breaking number of systematic investment plan (SIP) registrations in June, totalling 27,78,507, further gives credence to India's growth story. 

Key Data Points 

•  Total retail MF folios covering equity, hybrid and solution-oriented schemes reached 11,90,63,434 in June compared to 11,76,37,747 in May. 
•  Retail AUM comprising equity, hybrid, and solution-oriented schemes stood at Rs 23.09 lakh crore in June, with an AAUM of Rs 22.73 lakh crore.
•  In June, 11 open-ended schemes were launched, raising Rs 3,228 crore.     
•  The SIP contributions stood at Rs 14,734.45 crore. 
•  The number of SIP accounts stood at 6,65,37,033 in June, the highest ever compared to 6,52,84,902 in May 2023.
•  The SIP AUM stood at Rs 7,93,608.79 in June, compared to Rs 7,52,943.79 crore in May.
• Commenting on the robust equity inflows in June, Morningstar India analyst and manager of research Melvyn Santarita says: “Sustained foreign fund inflows, the anticipation of a favourable earnings quarter coupled with improving economic conditions propelled markets to perform well in the month.” 
• Santarita adds, “Net flows in the equity asset class rose substantially in June to Rs 8,637.49 crore compared with Rs 6,480 crore in April and Rs 3,240 crore in May. A good amount of the net inflows could be attributed to the 6 newly launched funds, which mopped up around Rs 3,038 crore.”

However, debt-oriented schemes saw net outflows of Rs 14,135 crore in June after witnessing two consecutive months of net inflows. Santarita says, “This was expected, with June being the quarter end, when corporates make advance tax payments. Hence, most outflows happened from liquid and ultra-short categories.”