The overall asset under management of the mutual fund industry fell for the first time in many months to ₹37.56-lakh crore in February against ₹38.91-lakh crore the month before that.
However, inflow into equity mutual funds increased to ₹19,705 crore last month against ₹14,888 crore in January as investors used the fall in market valuation to make fresh investments. Despite higher inflows, overall equity AUM fell to ₹12.94-lakh crore against ₹13.38-lakh crore logged in January due to mark-to-market losses amid the turbulence caused by the ongoing Russia-Ukraine conflict.
Interestingly, all the categories of equity schemes saw inflow and highlighted the growing maturity of retail investors.
Debt funds saw an outflow of ₹8,274 crore against an inflow of ₹5,088 crore in January.
SIP inflows dipped to ₹11,437 crore in February against ₹11,516 crore logged in the previous month largely due to market volatility. Retail AUM, too, dipped to ₹18.07-lakh crore against ₹18.55-lakh crore registered in January.
‘Economy well-poised’
NS Venkatesh, CEO, AMFI, said the fall in AUM was largely due to the geopolitical issue and will bounce back once the war between Russia and Ukraine comes to an end. Indian economy is in a much better position compared to other countries as inflation is not wildly out of control and the rise in crude oil should come under control once the war ends, he added.
Published on
March 09, 2022