Mutual Fund AUM and more II Check Highlights of ICICI Securities report
The mutual fund industry AUM declined marginally by 1.7% in January 2021 at Rs 30.5 lk cr compared to Rs 31 lakh in December 2020 primarily due to outflows in liquid funds. AUM of open ended equity funds is at Rs 8.91 lk cr in January 2021 compared to Rs 9.07 lk cr in December 2020. Equity funds witnessed outflows at Rs 9253 cr in January 2021. Equity funds have seen outflow for the seventh consecutive month.
The mutual fund industry AUM declined marginally by 1.7% in January 2021 at Rs 30.5 lk cr compared to Rs 31 lakh in December 2020 primarily due to outflows in liquid funds. AUM of open ended equity funds is at Rs 8.91 lk cr in January 2021 compared to Rs 9.07 lk cr in December 2020. Equity funds witnessed outflows at Rs 9253 cr in January 2021. Equity funds have seen outflow for the seventh consecutive month. Total outflows in the last seven months have accumulated at Rs 42000 cr. Few investors seem to be booking profit at current higher levels. The SIP inflows remain stable at Rs 8000 cr.
In debt funds, outflow was witnessed in liquid funds, low duration funds and money market funds. Almost all other categories of debt funds continue to witness stable inflows. Corporate bond funds and short term debt funds category remain the highest category in term so AUM at Rs 1.64 lk cr. Balanced Advantage or Dynamic Asset Allocation funds AUM are now around Rs 98000 cr. The balanced advantage category is gaining popularity as asset allocation funds at current higher level attracting higher investor interest.
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The year 2020 has been one of the most volatile years for Indian as well as global equity markets. There was a sharp fall of around 40-50% in February and March followed by an equally sharp recovery since then taking markets to new highs. Equity investors who stuck to their asset allocation plan and investors, who continued their regular investment through SIP, stood out winner in this extremely difficult year.
The sector rotation has also been witnessed in the last one year with the clear winners being IT and pharma sectors delivering 60% return. Banking funds have also outperformed in the last six months as the impact of Covid-19 related stress seems to be lower than earlier expected on the banking system. After the initial recovery phase, the broader markets as represented by the midcap and small caps funds have outperformed large cap funds category. International funds after having outperformed for a brief period, have underperformed in the last few months now.
While retail investors have shown significant maturity by continuing investment at lower levels, few investors seem to be booking profit as markets recovered. The normalised SIP inflows, however, remained sticky at around Rs 8000 cr. While outflows in equity funds were secular across categories, multicap funds witnessed higher outflows in the last three months. Midcap and small cap funds witness the least outflows in the last few months as its continued outperformance draw investors interest.
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