Mutual funds’ average assets under management (AUM) rose to more than Rs 24 lakh crore in the July-September quarter, about 3.8 per cent more than the year ago quarter, driven primarily by participation from retail investors.
The asset base of the industry, comprising 41 players, was Rs 23.40 lakh crore in the April-June quarter, according to data from the Association of Mutual Funds in India (Amfi). However, the growth was 16 per cent y-o-y. The Amfi data showed that the average AUM for the industry stood at Rs 20.95 lakh crore in July-September 2017.
Despite a positive growth in the July-September quarter in 2018, some industry participants say that in the month there has been some redemption from debt funds, while systematic investment plans (SIPs) in equity schemes continued to see strong investor interest.
Among the top 10 players in the MF industry, Axis Mutual Fund saw the highest growth at 10 per cent and its average AUM in July-September stood at Rs 87,630.59 crore. However, the growth of ICICI Prudential MF was flat, while HDFC MF witnessed a fall in its average AUM growth, the Amfi data added.
Swarup Mohanty, CEO, Mirae Asset Global Investments (India), said, “We have seen sharp correction in equity markets in the past few days and at our fund house we are witnessing net inflows into our equity funds. We are seeing a trend where investors are buying at dips. I would also like to say that September has been very good month of us on the equity side and monthly inflows of Rs 256 crore coming through SIPs continue to remain strong.” He added with correction in markets, it’s the time to invest through lump sum. —FE