Mutual funds mobilised around Rs. 8.25 lakh crore across various open-ended schemes in April 2023, suggesting the industry’s sustained growth and resilience against global headwinds.
In its monthly report, the Association for Mutual Funds in India (AMFI) said there were 1,285 open-ended schemes as on April 30, 2023. The schemes included income and debt-oriented schemes, growth and equity-oriented schemes, hybrid schemes, and social oriented schemes, among others. There were also gold exchange-traded funds, overseas fund-of-funds (FoF), index funds, etc.
On the other hand, there were a total of 1,452 close-ended schemes in April. These included fixed term plan, capital protection-oriented schemes, infrastructure debt funds, equity-linked savings schemes, etc. In addition, there were a total of 76 FoF domestic schemes.
AMFI said that nine new funds were launched in April, which included a floater fund, sectoral/thematic funds, a dynamic asset allocation fund, index funds, and gold and silver ETFs, mobilising a total of Rs 1,828 crore.
The index funds included HDFC Nifty Midcap 150 Index Fund, HDFC Nifty Smallcap 250 Index Fund, HDFC S&P BSE 500 Index Fund, and Kotak Nifty Smallcap 50 Index Fund. There was also the Baroda BNP Paribas Floater Fund, and ICICI Prudential Innovation Fund.
The number of mutual fund folios for open-ended schemes stood at a staggering 14,59,25,989 in April, while for close-ended schemes, it was 4,87,242, underscoring investors continued faith in the industry. AMFI data shows the industry’s net asset under management (AUM) was Rs 41.61 lakh crore in April, while the average AUM was Rs 41, 52,715 crore.
The data shows that the industry’s AUM grew more than five times over the past 10 years—from Rs 7.01 trillion in March 2013 to Rs 39.42 trillion on March 31, 2023. Interestingly, investments by individual investors in equity-oriented schemes rose by 13 per cent compared to a 0.16 per cent increase in debt-oriented schemes.
Commenting on the encouraging growth in the mutual fund industry in India, N.S. Venkatesh, chief executive of AMFI, said: “Investors have continued to invest in mutual funds through SIPs, which is a positive sign. We expect gross monthly inflows through systematic investment plans to reach Rs 17,000-18,000 crore per month by the end of the fiscal year, indicating substantial growth potential.”
Puneet Singhania, CEO of iRage Master Trust Investment Managers, said: “Overall, the trend in mutual fund assets has been encouraging for April. However, with recent changes in the way debt mutual funds shall be taxed, the fund flow into debt mutual funds may slow down significantly in the near future.”
Commenting on the AMFI data, Himanshu Srivastava, associate director at Morningstar India, noted: "Gold ETFs saw net inflows of Rs 124 crore in April 2023 after witnessing net outflows in the previous quarter. Over the past few months, we have seen gold prices rising. However, while gold prices rose, some investors would have chosen to book profits or take on risk with a view that central banks would pause further rate hikes. That said, pertinent risks still engulf developed economies, and therefore over the course of the month, investors again flocked to gold ETFs, considered as a safe haven during uncertain times.”