Mutual funds’ AUM in July at record high, crosses Rs15 trillion mark
AUM since July 2009 when AUM crossed Rs7 trillion in value
Mumbai: Indian mutual funds’ assets under management (AUM) crossed a record 15 trillion in the month ended July 2016, indicating that retail investors’ interest remains strong amid strength in secondary markets.
Total AUM value stood at 15.18 trillion, showed data from Association of Mutual Funds of India (Amfi).
July’s AUM increase is the quickest 1 trillion-jump in
AUM since July 2009 when AUM crossed 7 trillion in value, data showed.
Income funds AUM–accounting for 44.1% of total AUM –increased by 52,630 crore last month to .6.7 trillion.
Liquid and money market schemes reported an increase of 56,866 crore in AUM to a little more than 3 trillion. These are the schemes where companies usually invest their surplus liquid funds.
Mutual fund experts foresee industry AUM to grow in the near-to-medium term given the appreciating trend in equity and debt schemes, reflecting the positive trend in secondary equity markets and expected growth in the domestic economy.
“An increasing quantum of household savings is being invested into mutual funds, especially through the SIP (systematic investment plan) route. More and more retail investors are expected to participate and channelize money into mutual funds," said Dinesh Khara, chief executive and managing director, SBI Funds Management Pvt. Ltd, adding that SIP book size per month is now close to 3,000 crore.
SIPs are investment vehicles offered by mutual funds that allow investors to park small amounts into their schemes at regular intervals instead of having to make lump-sum payments.
Equity schemes’ AUM, which account for nearly 30% of total industry AUM, grew 22,321 crore or 5.21% month-on-month (m-o-m) to 4.5 trillion.During the same duration, BSE’s benchmark Sensex rose 3.89%, stock exchange data showed. The BSE 500 index, which highlights a broad representation of the Indian stock market, rose 5.05% in July 2016.
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