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Equity MF flows remain strong; SIP flows hit record high

Equity MF schemes (ex-arbitrage) witnessed inflows for the sixth consecutive month in Aug’21 amounting to INR 269bn (backed by New Fund Offers (NFOs) of INR 218bn (vs INR 140bn in Jul’21). Arbitrage funds saw net inflows of INR 18bn (vs net inflows of INR 149bn in Jul’21).

Including net inflows from arbitrage funds, net inflows in equity schemes were at INR 287bn. Further, SIP inflows were robust at INR 99.2bn (+27% YoY, +3% MoM). SIP AUM stood at INR 5.3trn (+57% YoY, +5% MoM). Net new SIPs registered (new SIPs registered minus SIPs discontinued) stood at 1.5mn in Aug’21 (vs 1.5mn in Jul’21).

Debt MF (ex-liquid) witnessed net inflows of INR 50.7bn (vs net inflows of INR 52.9bn in Jul’21) and liquid MF schemes witnessed net outflows of INR 104.7bn (vs net inflows of INR 586bn in Jul’21). Total industry MF AUM stood at INR 36.6trn (+33% YoY, +4% MoM) while equity MF AUM stood at INR 17.5trn (+54% YoY, +6% MoM). As of Aug’21, equity MF schemes contributed 46.0% (+590bps YoY) of total industry MF AUM while debt and liquid schemes contributed 27.7% (-260bps YoY) and 16.1% (-550bps YoY), respectively. HDFC AMC, NAM and UTI AMC have an equity AUM market share of 12.1% (-186bps YoY), 6.8% (- 32bps YoY) and 4.8% (+21bps YoY) respectively.

Key highlights are tabulated below:

* Net flows (Aug’21):

* Equity MFs (incl. ELSS + Arbitrage + Balanced)

Inflow: INR 287bn (vs. INR 414bn inflow in Jul’21).

* Net flows in equity schemes include INR 18bn net inflow from arbitrage schemes. Excluding arbitrage flows, equity schemes witnessed net inflows of INR 269bn (vs. INR 265bn net inflow in Jul’21 on a like-to-like basis).

* Large and midcap, Mid cap and Multi cap/Flexicap witnessed inflows of INR 4.5bn, INR 1.6bn and INR 47.2bn respectively, while Large cap and Small cap witnessed outflows of INR 0.8bn and INR 1.6bn respectively.

* Debt MFs (ex-liquid schemes) inflow: INR 50.7bn (vs. INR 52.9bn outflow in Jul’21).

* Liquid MFs outflow: INR 104.7bn (vs. INR 585.8bn inflow in Jul’21).

* MF AUM (as of Aug’21):

* Equity MFs (incl. ELSS + Arbitrage + Balanced) AUM: INR 17.5trn (+54% YoY, +6% MoM).

* Equity MF AUM includes INR 1.1trn in arbitrage schemes.

* Debt MFs (ex-liquid schemes) AUM: INR 9.6trn (+18% YoY, +1% MoM).

* Liquid MFs AUM: INR 5.7trn (-0.2% YoY, -1.5% MoM).

* Overall MFs AUM: INR 36.6rn (+33% YoY, +4% MoM).

* SIP inflows (Aug’21):

* SIP inflows in Aug’21 stood at INR 99.2bn (+27.3% YoY, +3.2% MoM) with SIP AUM at INR 5.3trn (+57% YoY, +5% MoM).

* New SIPs registered stood at c.2.5mn for Aug’21 (c.2.4mn for Jul’21) while SIPs deregistered stood at c.1.0mn for Aug’21 (c.0.9mn for Jul’21).

* Industry MF AUM mix (as of Aug’21):

* Equity MF schemes (incl. ELSS + Arbitrage + Balanced) contributed 46.0% to industry monthly average AUM in Aug’21, compared with 40.1% in Aug’20 (+590 bps).

* Individuals contributed 53.7% to Industry monthly average AUM in Aug’21, compared with 51.5% in Aug’20 (+220 bps).

* Market shares based on Aug’21 monthly average AUM:

* Equity MF schemes: Among top AMCs, UTI AMC and SBI AMC gained 21 bps and 16 bps of market share respectively since Aug’20, while HDFC AMC, ICICI Pru AMC and NAM have lost 186 bps, 71 bps and 32 bps of market share respectively.

* Debt MF schemes: Among top AMCs, HDFC AMC, NAM and ICICI Pru AMC have gained 137 bps, 56 bps and 8 bps of market share respectively since Aug’20, while SBI AMC and UTI AMC have lost 85 bps and 37 bps of market share respectively.

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