Fund inflows into equity mutual fund schemes have dropped by a huge 62% in August this year. Interestingly, the fall in investment comes when benchmark indices Sensex and Nifty touched fresh record highs in a majority of sessions during the month.
Investors infused a net Rs 8,666.68 crore in August 2021 in equity mutual fund schemes compared to the previous month’s deposit of Rs 22,583.52 crore.
Equity mutual funds logged a total inflow of Rs 33,668.76 cr and an outflow of Rs 25,002.08 crore in last month.
However, at Rs 36.59 lakh crore, the net AUMs for the Indian mutual fund industry breached the Rs 36 lakh crore landmark for the first time ever.
The mutual fund industry has added a whopping over 80 lakh folios for the first time ever, within first five months of FY22.
The total number of folios has now reached 10.85 crore. In comparison, the MF industry managed to add just 74 lakh folios between April 2020 to March 2021.
A huge 78 lakh retail folios were added in the first five months of FY22 against 18 lakh folios in FY21.
Monthly SIP contribution in August reached an all-time high of Rs 9,923.15 crore. With huge investor interest in SIPs, AUMs stood at Rs 5.26 lakh crore in August, almost a third of total retail AUMs of Rs 17.15 lakh crore.
Last month, 24.92 lakh new SIPs were started which is the highest ever registration and led the MF industry reporting a record 4.32 crore SIP accounts.
Since April 2021, 53 lakh SIP accounts have been created, taking the total number of SIP accounts to all time high of 4.32 crore in August 2021.
Retail AUMs have touched an all-time high of Rs 17.15 lakh crore and now form 46.87% of total industry AUMs at Rs 36.59 lakh crore.
Commenting on the mutual fund data for August, N S Venkatesh, Chief Executive, AMFI said, “Overall, positive flows in the open-ended MF schemes and market indices touching an all-time high, helped the Indian MF Industry Net AUMs to breach record Rs 36 lakh crore milestone in August 2021.
Retail AUM at Rs┬а 17.15 lakh crore, almost half of total industry AUMs, SIP AUMs at record high of Rs 5.26 lakh crore, which now forms a third of retail AUM, healthy rise in SIP Accounts at record 4.32 crore and monthly SIP contribution at an all-time high at INR 9,923.15 crore is reflective of established and rising retail preference towards mutual funds as a long-term wealth creation avenue. “
