MF industry AUM crosses Rs 31L cr in December

Mumbai: The assets under management (AUM) of mutual funds (MF) was up at Rs 31.02 lakh crore in December from Rs 30 lakh crore logged in November. The AUM of mutual fund was up 11 per cent to Rs 31.02 lakh crore in January from Rs 27.85 lakh crore. Assets under management of strategic investment plan (SIP) as at the end of the December month was at Rs 3,98,100.52 crore, which is an all-time high. It was at Rs 3,78,286.39 crore a month ago.

As a result, SIP contribution crossed the mark of Rs 8,418.11 crore in the month from Rs 7,302.16 crore a month ago. In a similar fashion, SIP accounts crossed the mark of 3,47,12,422 in the month from 3,40,66,147 a month ago. There are 45 mutual fund houses in the country at present. Commenting on the December 2020 Mutual Fund monthly data, N S Venkatesh, chief executive, AMFI said, "MF industry AUM at an all-time high, increase in retail folios and also SIP folios, is reflective of investor confidence in mutual fund asset class. While net inflows in equity funds and hybrid are indeed negative, on the back of profit-led redemptions, the gross inflows are a healthy Rs 36,000 crore in these two categories". On the debt side, I expect RBI to continue maintaining accommodative stance and keep rates at current levels for economy to play a catch up, which is reflected in positive flows in corporate bond funds owing to the schemes holding quality paper and also shorter duration strategies including floater and dynamic bond schemes, he said.

However, outflow from equity schemes of mutual funds continued for the sixth month in a row in December on the back of profit-booking by investors as markets hit a record high.

Equity mutual funds registered an outflow of Rs 10,147 crore in December against Rs 12,917 crore logged in November, as per data released by Association of Mutual Funds in India. All equity schemes except for Dividend yield and thematic funds recorded an outflow last month.