according to data from the Association of Mutual Funds in India. ... CRISIL is a global analytical company providing rat
Media note
Mutual fund AUM, January 2016 As per data released by AMFI
Equity retreat shaves mutual fund AUM by Rs 11.2 billion The latest plunge in equities, which began as the world ushered in 2016 and China tripped the global markets, shaved assets under management (AUM) of mutual funds by Rs 11.21 billion, or 10 basis points, to Rs 12.74 trillion in January, according to data from the Association of Mutual Funds in India. What saved the blushes were income, liquid funds and exchange-traded funds (ETFs), including gold-related ones. Not surprisingly, equity funds were battered, and their AUM fell 5.25% to Rs 3.84 trillion, marking the biggest percentage decline in the last 35 months. In absolute terms, AUM shrank Rs 213.12 billion, or the most in 7 years, as mark-to-market losses surged. The Nifty 50, the market bellwether, declined nearly 5% in January. Yet investors seem to keep the faith, as shown in a net inflow of Rs 29.14 billion. This, however, is the lowest absolute growth in 20 months. Since May 2014, equity funds have been seeing net inflows as investors bet on a rebound in the India economy.
Balanced funds remain attractive AUM of balanced funds fell 2.5%, or Rs 10.72 billion, to Rs 411.21 billion primarily led by losses in equity assets. However, investors don’t seem perturbed as the category still managed to attract Rs 8.80 billion, marking the 20
th
consecutive month of net inflows. Represented by the CRISIL Balanced Fund Index, the category lost nearly 3% in value in January.
Global funds see 20th month of outflows Redemption pressures persisted for global funds -- or fund of funds that invest abroad – as concerns over global recovery continued to spook investors. The category saw its 20
th
straight month of outflows in January. Its AUM, which had
touched an all-time high of Rs 32.26 billion in June 2014, has shrunk 42% since to Rs 18.77 billion.
Income and liquid funds rebound after December decline For income funds, AUM climbed 3%, or Rs 166 billion, to Rs 5.72 trillion, driven by inflows and mark-to-market gains. January saw an inflow of Rs 150 billion, which is a rebound considering that in December 2015, there was an outflow of Rs 258.75 billion. AUM of liquid funds edged up 1.6%, or Rs 37.32 billion, to Rs 2.37 trillion, aided by net inflows of Rs 24.55 billion.
Pricier gold lends shimmer Gold ETFs surged almost 6%, or Rs 3.23 billion, to Rs 60.96 billion, led by gain in underlying asset prices. Gold prices, represented by the CRISIL Gold Index, rose 6.9% in January. The category, however, continues to haemorrhage, clocking an outflow for the 32
2
nd
straight month at Rs 0.81 billion.
ETFs continue to get a provident fund lift AUM of ETFs swelled to a new high at Rs 126.45 billion, primarily gaining from the Employees’ Provident Fund Organisation’s decision to invest in the equity market through them. AUM rose 6.4%, or Rs 7.58 billion, led by an inflow of Rs 13.85 billion. Gains, however, were capped by mark-to-market losses.
Table 1 – Month-on-month mutual fund flows and AUM distribution Mutual fund category Income funds
Net inflow/ outflow (Rs billion) Jan-16 Dec-15 2016 Total 150.14 -258.75 150.14
Month-end AUM (Rs billion) Jan-16 Dec-15 Difference 5719.33 5553.64 165.69
Infrastructure debt funds
0.00
0.00
0.00
15.12
15.00
0.12
Equity funds*
29.14
36.44
29.14
3843.50
4056.62
-213.12
Balanced funds
8.80
45.11
8.80
411.21
421.93
-10.72
Liquid / money market funds
24.55
-52.60
24.55
2367.02
2329.70
37.32
Gilt funds
0.23
-2.43
0.23
174.78
174.63
0.15
Gold ETFs
-0.81
-0.46
-0.81
60.96
57.73
3.23
Other ETFs
13.85
7.22
13.85
126.45
118.87
7.58
Fund of funds investing overseas
-0.21
-0.20
-0.21
18.77
20.23
-1.46
225.69
-225.67
225.69
12737.14
12748.35
-11.21
Total * Includes ELSS
Source - AMFI
3
Contact us Email ID:
[email protected]
About CRISIL Limited CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations.
About CRISIL Research CRISIL Research is India's largest independent integrated research house. We provide insights, opinion and analysis on the Indian economy, industry, capital markets and companies. We also conduct training programs to financial sector professionals on a wide array of technical issues. We are India's most credible provider of economy and industry research. Our industry research covers 86 sectors and is known for its rich insights and perspectives. Our analysis is supported by inputs from our network of more than 5,000 primary sources, including industry experts, industry associations and trade channels. We play a key role in India's fixed income markets. We are the largest provider of valuation of fixed income securities to the mutual fund, insurance and banking industries in the country. We are also the sole provider of debt and hybrid indices to India's mutual fund and life insurance industries. We pioneered independent equity research in India, and are today the country's largest independent equity research house. Our defining trait is the ability to convert information and data into expert judgements and forecasts with complete objectivity. We leverage our deep understanding of the macro-economy and our extensive sector coverage to provide unique insights on micro-macro and cross-sectoral linkages. Our talent pool comprises economists, sector experts, company analysts and information management specialists.
CRISIL Privacy CRISIL respects your privacy. We use your contact information, such as your name, address, and email id, to fulfil your request and service your account and to provide you with additional information from CRISIL and other parts of McGraw Hill Financial you may find of interest. For further information, or to let us know your preferences with respect to receiving marketing materials, please visit www.crisil.com/privacy. You can view McGraw Hill Financial’s Customer Privacy Policy at http://www.mhfi.com/privacy. Last updated: August 2014
Disclaimer CRISIL Research, a division of CRISIL Limited (CRISIL) has taken due care and caution in preparing this Report based on the information obtained by CRISIL from sources which it considers reliable (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. This Report is not a recommendation to invest / disinvest in any company covered in the Report. CRISIL especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this Report. CRISIL Research operates independently of, and does not have access to information obtained by CRISIL’s Ratings Division / CRISIL Risk and Infrastructure Solutions Limited (CRIS), which may, in their regular operations, obtain information of a confidential nature. The views expressed in this Report are that of CRISIL Research and not of CRISIL’s Ratings Division / CRIS. No part of this Report may be published / reproduced in any form without CRISIL’s prior written approval. Stay Connected | CRISIL Website |
Twitter
|
LinkedIn
|
YouTube
|
Facebook
CRISIL Limited CRISIL House, Central Avenue, Hiranandani Business Park, Powai, Mumbai – 400076. India Phone: +91 22 3342 3000 | Fax: +91 22 3342 8088 www.crisil.com CRISIL Ltd is a Standard & Poor's company
