The monthly contribution to systematic investment plans (SIPs) grew by Rs 423.33 crore in May, the Association of Mutual Funds in India (Amfi) has revealed in its monthly industry data. The figures for May 31, 2022 was 12,286.42 crore, higher by Rs 423.33 crore as against the April 30, 2022 figure of Rs 11,863.09 crore.
Also, all open-ended mutual fund schemes, index funds, exchange-traded funds (ETFs), fund of funds, and gold ETFs have witnessed positive net flows at a combined Rs 36,041.52 crore during May 2022.
The Amfi report further noted that the net assets under management (AUM) for the Indian mutual fund industry stood at Rs 37,22,010.22 crore as on May 31, 2022, a year-on-year (y-o-y ) growth of 12.60 per cent. The average AUMs, however, increased 13.26 per cent y-o-y to Rs 37,37,087.48 crore.
“Retail mutual fund investors continue to embrace the SIP mode, and equity and hybrid asset class for their long-term savings, at the same time reallocating their savings in fixed income asset class more towards liquid and overnight categories and safer Government Securities schemes, owing to rising interest rate scenario,” says NS Venkatesh, chief executive, Amfi.
According to the report, the number of mutual fund folios as on May 31, 2022, has risen 32.77 per cent y-o-y to an all-time high at Rs 13.33 crore compared to Rs 10.04 crore as on May 31, 2021.
“The number of folios grew month-on-month by 1.56 per cent from Rs 13.13 crore as on April 30, 2022,” the report said.
The continued positive flows in retail mutual fund schemes stood for the second consecutive month this fiscal, with net flows recorded at Rs 22,952 crore as on May 31, 2022. Additionally, funds mobilised under retail schemes stood at Rs 49,391 crore, outweighing redemptions, which stood at Rs 26,439 crore during May 31, 2022, the Amfi report said.
“The retail investor confidence into equity asset class stems from the fact that India’s growth story continues to be promising and intact relative to other major economies. Despite rising inflation and interest rates and challenging macro-economic scenario, the GDP forecast continues to be pegged at 7.2 per cent by the Reserve Bank of India (RBI). Investments from domestic institutional investors (DII) into Indian equities continue to be robust, despite outflows by foreign institutional investors (FIIs),” says Venkatesh.
In the equity/growth category, flexi-cap, large-cap and large- and mid-cap schemes emerged as top-3 in the net flows, according to the report. Moreover, in the hybrid category, dynamic asset allocation, balanced hybrid and aggressive hybrid, and arbitrage schemes witnessed positive flows. In the fixed income/debt category, overnight, liquid, and gilt schemes witnessed positive flows.
As of May 2022, the net flows for growth/equity oriented schemes stood at Rs 18,529.43 crore, while for hybrid schemes it was Rs 5,123.25 crores, for solution-oriented schemes, it was Rs 159.84 crore, for index funds, it was Rs 5,723.28 crore, and for other ETFs, it was Rs 6,056.07 crore. For gold ETFs, it was Rs 203.39 crore, and for fund of funds investing overseas, the net flows stood at Rs 246.26 crore.
