Average AUMs went up by 5 per cent as compared to 16 per cent in May.
June has turned out to be a very dry month for the mutual fund industry compared with its performance in the previous month. Average assets under management (AUMs) in June went up by 5 per cent only compared with 16 per cent in May. Inflows into equity funds led to the average AUM rising to an all-time high of Rs 6.7 lakh crore in May. At the same time, outflows from debt fund towards the end of the month resulted in the industry's month-end AUM drop by 12 per cent to Rs 5.8 lakh crore. Despite net outflows of over Rs 85,000 crore in the month, debt funds continued to dominate the AUM spectrum with an almost 70 per cent share of assets.
“Continued retail interest in equity markets saw equity-oriented funds witnessing net inflows of Rs 1,500 crore in June, on the back of Indian equity markets’ best quarterly performance in 17 years with the S&P CNX Nifty gaining 42 per cent,” said Krishnan Sitaraman, director, Crisil FundServices. June saw the index up by almost 70 per cent from its 52-week low.
Despite the best quarterly performance for the June ended quarter, equities saw a reversal of the uptrend seen in April and May with the S&P CNX Nifty down 3.6 per cent in June. Profit-taking, slowing FII purchases (net buying of Rs 3,200 crore as against Rs 20,600 crore in May), negative global cues and an apprehension of the Union Budget were some of the reasons behind the reversal.
Sectorwise IT, FMCG, capital goods and consumer durables stocks performed very well in June with returns of 10, 7.9, 7.4 and 7.3 per cent, respectively. Key losers were realty and oil & gas sectors, down 16 and 9.9 per cent, respectively.
Debt funds saw outflows mainly due to advance tax outflows (over Rs 20,000 crore) and banks pruning mutual fund investments to meet their quarter-end balance sheet requirements or capital adequacy. The latter element has left a major impact on the industry AUM because of the significant investments by banks in mutual funds. As per the latest Reserve Bank of India data, banks' investments in mutual funds were Rs 1.23 lakh crore as on June 19. The Crisil FundeX (tracks diversified equity funds) returned 48 per cent during the quarter (highest quarterly gains since inception) as compared to 42 per cent of the S&P CNX Nifty. On a monthly basis, however, the Crisil FundeX lost 1 per cent in June as against a 3.6 per cent loss in the S&P CNX Nifty. The Crisil Fundbx (tracks balanced funds) gave 40 per cent returns in the quarter, the second best among Crisil indices.
It gained 0.5 per cent in June. Among debt-oriented indices, the Crisil Mipex (benchmark for monthly income plans) gained 8 per cent in the quarter but lost 0.11 per cent in June. The Crisil Fund-dX (tracks long-term bond funds) saw the highest monthly gain among the Crisil indices of 0.72 per cent in June.
