MF AUMs at all-time high in December: AMFI

The assets under management (AUM) of the mutual fund industry touched an all-time high of Rs 16.46 lakh crore in December, according to data from the Association of Mutual Funds in India (AMFI) and expect to cross Rs 20 lakh crore this year.

This, according to ICRA, translates into a compounded annualised growth rate of 18 per cent from Rs 3.26 lakh crore AUM in March 2007 and is led by the phenomenal growth in SIPs with December alone seeing inflows of Rs 3,973 crore.

“The robust performance of the industry comes on the back of growing investor awareness and increased investments in systematic investment plans (SIPs). Post-demonetisation, interest rates have started declining and can have a positive bearing on the performance of debt-oriented funds,” ICRA said in a note on Monday.

The industry AUM had crossed Rs 10 lakh crore in May 2014, and it may reach the important milestone of Rs 20 lakh crore in 2017, ICRA added. Noting that the equity category saw steady inflows in the year, ICRA said fund houses saw net inflow of Rs 10,923 crore in December into equities, of which Rs 10,103 crore were in equity funds. “This is the ninth straight month to witness positive inflows in equity schemes. Steady inflows from SIPs and increasing investor awareness have contributed to this growth,” ICRA added.