MF AUM rises by 20 per cent to Rs 23.4 trillion from this quarter last year

Rise of 20 per cent from April-June Quarter last year in MF AUM is marked by strong participation of retail and systematic awareness campaign, but there is a slowdown recently 

The Mutual Fund Asset base for the quarter of April-June rose to Rs 23.40 trillion, which is a surge of 20 per cent from this period past year. The growth is a modest 1.5 per cent from the last quarter, when the Asset under Management (AUM) was Rs 23.05 lakh crore according to Association of Mutual Funds India (AMFI) data.

The total AUM for April-June 2017 was Rs 19.52 trillion. The industry experts are crediting this growth to the twin factors of strong participation of retail investors and systematic awareness campaign.

“Mutual Funds Sahi Hai, the investor awareness campaign being run by AMFI under guidance from SEBI, has generated a lot of interest among potential investors who are now looking at Mutual Funds as a preferred investment option”, said N S Venkatesh, Chief Executive of AMFI.

He further added that he is confident about Mutual Funds which will continue to see strong inflows, despite the recent volatility. “Inflows through the Systematic Investment Plan (SIP) route from retail investors and flows from B30 cities, continue to remain robust”, he said.

Out of the 42 fund houses present and functional, 33 witnessed growth while eight saw decline in the AUM as compared to period for April-June Quarter last year.

ICICI Prudential MF continued to be the largest with an AUM of Rs 3,10,166 crore (excluding fund of funds) while HDFC MF with an AUM of Rs 3,06,840 crore grabbed the second place.

Though there is an increase in the AUM on an annual basis, the AUM for the month of May 2018 had fallen by 2.83 per cent or by Rs 65,927 crore. The decline was driven by outflows in liquid and income funds.