Mutual Fund Assets Under Management which crossed Rs 27 trillion for the first time last year, has achieved another milestone of Rs 28 trillion.
According to Motilal Oswal, the mutual fund industry has come a long way in the last decade, with assets under management rising a staggering 4.4x to Rs 28.2 trillion in Oct’20 from Rs 6.5 trillon in Oct’10.
“Total assets under management for the mutual fund industry crossed the Rs 28 trillion mark for the first time to reach Rs 28.2 trillion in Oct’20 (+5.1% MoM), mainly led by income, liquid, and equity funds. Notably, AUM was up MoM across categories,” a Motilal Oswal report has stated.
Equity assets under management (incl. ELSS and index funds) of domestic mutual funds increased 1.6% month-on-month to Rs 8.2 trillion in Oct’20. This was on account of a rise in market indices (Nifty +3.5% MoM) and marginal increase in the sales of equity schemes (up 2.1% MoM to Rs 183 billion).
“At the same time, redemptions increased 19.9% MoM to Rs 222 billion – the highest in 31 months. This led to net outflows of Rs 39 billion in Oct’20, marking the fourth consecutive month of outflows.
Investors continued to park money in mutual funds, with gross inflows and the contribution of systematic investment plans (SIPs) remaining stable at Rs 78 billion in Oct’20,” a Motilal Oswal report has stated.