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Equity flows remain strong, overall net outflows driven by Debt and Liquid schemes

Momentum in SIP growth continues

* The Mutual Fund industry saw net outflows of INR75b in May’22, driven by higher redemptions in Debt funds. Industry MAAUM fell 4% MoM to INR37.4t.

* Industry net outflows stood at INR77b in FY23 till date (v/s net inflows of INR543b in FY22 for the same period) on the back of net outflows in Debt (INR305b) and Liquid funds (INR128b), whereas Equity funds saw net inflows of INR177b.

* The number of folio additions rose 15% MoM to 2.1m. All fund categories saw folio additions, expect Debt funds.

* SIP flows stood at INR123b (v/s INR119b in Apr’22).

Debt segment sees net outflows, led by strong redemption in close-ended schemes; Liquid funds too see net outflows

Debt funds saw net outflows for the fourth consecutive month to INR305b (v/s net outflows of INR108b in Apr’22). All Debt categories, except Overnight funds, saw net outflows, with prominent redemptions in Fixed Term Plans (close-ended schemes). Liquid funds too saw outflows of INR128b as compared to inflows of INR449b in Apr’22, led by a slowdown in gross inflows. AUM under Liquid funds fell 5% MoM to INR5t in May’22.

Equity inflows remain strong even in the absence of NFOs

The Equity segment saw net inflows of INR177b (v/s INR156b in Apr’22). Since there were no NFOs in May’22, the entire inflows were in the existing schemes. Equity funds across all cohorts saw net inflows. Equity AUM fell 6% MoM to INR 13.1t, driven by weak equity markets. Hybrid funds saw net inflows of INR51b (v/s INR72b in Apr’22). Hybrid AUM grew 4% YoY, but fell 2% MoM to INR 4.9t.

Decline in the quantum of net inflows into Passive schemes (ETF + Index)

The quantum of net inflows into Passive funds declined for the second consecutive month to INR122b in May’22 (v/s INR194b/INR159b in Mar’22/Apr’22). AUMs under passive schemes stood at INR5.1t, up 52% YoY, but down 2.6% MoM. However, the number of folio additions in ETF funds touched 0.7m in May’22 from 0.5m in Apr’22

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