The pace of growth in mutual funds’ assets under management (AUM) moderated during the first half of the ongoing financial year (H1 of FY23), reported Business Standard.
The Association of Mutual Funds in India (Amfi) data shows that the average AUM of the industry rose 2 per cent in H1 to ₹39 trillion. During the previous financial year (FY22), industry AUM had grown 20 per cent over the FY21 figures.
Given the tepid growth during the first half, moderation in equity inflows and heightened market volatility, it is a tall ask for the industry to top last year’s growth figures.
The moderation in growth during the first half is on the back of outflows from debt funds, declining net inflows in equity schemes and little or no mark-to-market gains. This is owing to the benchmark indices remaining flat between April and September 2022.
Nifty50 slipped 3 per cent in the first half of FY23, while the Nifty Mid-cap 100 rose 1.7 per cent. During the first five months, investors redeemed net ₹16,100 crore from debt schemes and invested over ₹56,000 crore in active equity schemes. However, investments in active equity schemes have been on a decline since June.
An analysis of fund-wise AUM data shows that some fund houses were still able to record good growth. SBI MF was the fastest-growing fund house with its AUM rising 5.5 per cent, helping it to further consolidate its top position.