scorecardresearchDomestic mutual funds’ share in equity assets hits new record in Jan: Report

Domestic mutual funds’ share in equity assets hits new record in Jan: Report

Updated: 24 Feb 2023, 11:52 AM IST
TL;DR.

Steady inflows into schemes help raise ownership by 130 bps to 18.3 percent, behind FPIs’ 37.2 percent

The equity AUM of local mutual funds includes all equity exposure from equity funds to balanced funds

The equity AUM of local mutual funds includes all equity exposure from equity funds to balanced funds

The share of domestic mutual funds in the total assets under management (AUM) of institutional investors hit a record high of 18.3 percent in January helped, reported Economic Times.

Their share rose around 130 basis points year-on-year, the highest among all investor categories, shows the data from depositories. It is now the second-highest after the share of foreign portfolio investors (FPIs) at 37. 2%.

The equity AUM of local mutual funds includes all equity exposure from equity funds to balanced funds. It increased by 13 percent to 22. 6 lakh crore in January from the year ago.

The total institutional investors’ AUM which includes foreign portfolio investors (FPI), alternative investment funds, insurance companies, and local pension funds in addition to domestic funds increased by 5% to 123 lakh crore.

Institutional investors account for nearly half of India’s total market capitalisation of $3. 1 trillion.

According to data from the SEBI, the total 12-month rolling investment by local funds reached nearly 2 lakh crore in January.

FPIs, on the other hand, sold 1. 2 lakh crore of Indian equities. Barring August 2022, local funds have been net buyers in equities on a monthly basis in the past two years with an average inflow of 14,280 crore per month.

The dual impact of inflows in local funds and outflows in overseas funds expanded the ratio between AUMs of the local mutual fund and FPIs to a record 49 percent in January compared with 41 percent a year ago.

 

First Published: 24 Feb 2023, 11:52 AM IST