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Mutual Funds

Mutual Funds AUM Touch 16 Lakh Crore, Liquid Funds Witness Negative Inflows


Assets managed by the MF Industry has increased from Rs. 15.73 lakh crore in Jul-16 to Rs. 16.06 lakh crore in Aug-16. 
Sequential growth stood at 2.13% or Rs. 0.33 lakh crore compared to 1.12% Rs. 0.14 lakh crore during the same period in the previous year.

Institutions vs Individuals: Cut Throat Competition

The composition between the Individual Investors and Institutional Investors has remained stable at around 45% and 55% respectively though both the groups have made massive new investments.
While Individual Investors made fresh investment of Rs. 0.13 lakh crore in August last year, this year the number turned out to be Rs. 0.16 lakh crore. Same number for Institutional Investors stood at Rs. 0.01 lakh crore and 0.16 lakh crore (comfortably in the driver seat).

Scheme Wise Composition

While Debt, Equity and ETF’s witnessed net positive inflow, Liquid Funds witnessed a drop by Rs. 0.28 lakh crore.
Fresh investments in Debt stood at Rs. 0.39 lakh crore, Equity at Rs. 0.20 lakh crore and ETF at Rs. 0.02 lakh crore.
While Individual investors prefer equity (59%) over debt (36%) for investments, Institutions have preferred Debt (51%) over liquid funds (38%).
Here is how the investment decisions were spread across the different schemes between Individuals and Institutions:

B15/ T15 Mix

The top fifteen cities in India are marked as T15 for mutual fund investors – so if you’re in these cities, your investment is a T15 investment. B15 is everything else.

  • B15 assets have grown from Rs. 2.55 lakh crore in Jul-16 to Rs. 2.65 lakh crore in August and have remained consistently maintained a 50-50 investment ratio in Equities and Non Equities.
  • T15 assets have shows a much better growth with the addition of Rs. 0.23 lakh crore from Rs. 13.17 lakh crore in Jul-16 to Rs. 13.40 lakh crore in Aug-16. T15 investors weigh more on the Non-Equities end with a 3:1 investment ratio. This is due to the presence of higher number of Institutions in this segment.


Distributors vs Direct – Direct Closing In, at 41%

  • 41% of the assets or Rs. 6.58 lakh crore of the mutual fund industry came directly. This has been growing significantly since Oct-15 when it was around 36%.
  • Equity investments are still controlled by the Distributors with 85% of the investments.


Individual-Investor Assets Composition

  • T15 Distributors dominate all the schemes barring ETFs which witness T15 Direct contributions.


Assets Under Management contribution across India

Here is how the AUM flow has changed across the 5 different zones in India.
Here is AUM for the top 4 states. All values in Rs. Crore.
Source: AMFI -> Research & Information -> Other Data


Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.


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