Mutual Fund AUM Declines to an 11-month Low
Total assets under management (AUM) for the mutual fund (MF) industry declined for the second consecutive month to Rs35.6 trillion (-4.2% month-on-month) in June'22—the lowest level since August'21— led by a decline in AUM for income (Rs 711b), equities (Rs 405b), liquid (Rs 219b), other ETFs (Rs 115b).
A report by Motilal Oswal Financial Services said equity AUM for domestic MFs (including ELSS and index funds) decreased 2.9% MoM to Rs13.8t in June'22. This was due to a decline in equity scheme sales (down 7.6% MoM to Rs 355b).
Further, market indices closed lower (the Nifty was down 4.8 MoM). At the same time, redemptions dipped 15.4% MoM to Rs127b - at a 25-month low. Consequently, net inflows declined marginally to Rs228b in June'22, from Rs234b in May'22.
The month saw notable changes in the sector and stock allocation of funds. On a MoM basis, the weights of automobiles, oil & gas, consumer, healthcare, telecom, and PSU banks increased, while the weights of private banks, metals, NBFCs, cement, retail, utilities, textiles, insurance, and chemicals moderated.
Automobiles' weight increased for the third consecutive month to a 42-month high of 7.6% (+50bp m-o-m, +110bp y-o-y). The sector now ranks third in the allocation of mutual funds—it was in the fourth position a month back. Oil & Gas weight stands at a 18-month high of 7.3% (+20bp m-o-m and +40bp y-o-y).
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Ramesh Popat
1 year ago
A very welcome decline. Still it requires 20% less for the health of the market and
in the interest of retail investors. Market is overvalued and further downside will be
damaging to the portfolios of retails investors. IF FIIs continues selling as earlier,
there can be a period when MF will be out of liquidity and then they will also join
selling with FII. Mani times Mutual fund sahi NAHI hai !
Kamal Garg
1 year ago
How much decline in AUM is on account of falling NAVs (because that also affects AUM) and how much is due to withdrawal of money is not clear.
Free Helpline
Legal Credit