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Equity-Oriented Funds Drive MF Assets To Record High In 2021: Report


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Equity-Oriented Funds Drive MF Assets To Record High In 2021: Report

Assets underneath administration of mutual funds rose to a document excessive of Rs 37.73 lakh crore in 2021

Mumbai: Led by an increase in inflows into equity-oriented funds, property underneath administration (AUM) of mutual funds rose to a document excessive of Rs 37.73 lakh crore in 2021, up by 22 per cent from the corresponding interval, in response to a report by Crisil.

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It additional stated that the web incremental influx of Rs 6.70 lakh crore in 2021 can also be a document over the earlier peak of Rs 4.80 lakh crore in 2017, and Rs 4.5 lakh crore in 2020.

In share phrases, the AUM rose as a lot as 22 per cent in comparison with 17 per cent in 2020, says the report which attributes the document numbers to the inflows into equity-oriented funds which hogged the lion’s share within the yr, in contrast to within the earlier yr when it noticed internet outflows.

Crisil additional stated that whereas internet flows prior to now two years – when the markets have been on a excessive after the pandemic induced massacre within the first half 2020 – have been comparable at round Rs 1.81 lakh crore every, the plot strains have been starkly completely different with 2020 seeing sharp inflows into debt-oriented funds, and 2021 seeing equity-oriented funds cornering the majority of inflows.

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To make sure, internet inflows into debt-oriented funds in 2020 got here regardless of the liquidity disaster, with as a lot as Rs 1.94 lakh crore of outflows in March – the best since September 2018 with an outflow of Rs 2.10 lakh crore following the IL&FS disaster.

On the opposite hand, open-ended debt-oriented funds noticed inflows of Rs 2.01 lakh crore in 2020 whilst equity-oriented funds noticed internet inflows of simply Rs 9,100 crore.

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Hybrid funds additionally took a beating with over Rs 53,000 crore outflows. However, passive funds continued to garner cash, lapping up Rs 62,000 crore, led by inflows from institutional traders just like the Employees’ Provident Fund.

In distinction, 2021 noticed traders put a bigger quantity of their cash in equity-oriented funds, drawn by the sturdy good points within the underlying fairness markets.

While fairness funds received internet inflows of Rs 91,000 crore, passive funds noticed Rs 1.14 lakh crore coming in and hybrid funds Rs 1.02 lakh crore, with the latter two boosted by a spate of latest fund provides, at 41 and eight funds, respectively.


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