Indian Industry AUM Trends : June 2022

28 July 2022

In June, Total MF closing AUM stood at Rs35.6tn (-4% MoM / +6% YoY). Liquid AUM was down 4% MoM while income fund AUM was down 8% MoM. Equity-oriented closing AUM was down 3% MoM while average Nifty-50 was down 2.0% in Jun ’22. What does this all add up to and what are the Major AUM trends that are emerging in the Market?

Key Highlights:

• 1. Equity Oriented MF: Smaller funds held their market share gains in equity-oriented MF AAUM (share of beyond top-10 funds was stable YTD at ~22.5% in 2MFY23; up from 20.1% in FY2019 and 16.7% in FY2015). This was led by strong sales to retail customers through direct channels.






• 2. Fixed Income: Larger players consolidated their position in fixed income market (share of top-5 funds in debt-oriented schemes has remained high at ~62.5-65% since FY2021)
• 3. Retail Participation: Retail mix in overall equity-oriented MF AAUM has declined to 43.8% in 2MFY23 from peak of 46.4% in FY2021 likely reflecting higher outflows from the retail segment amidst sluggish markets or strong lumpsum inflows from HNIs in CY2021.



• 4. SIP : On a MoM basis Gross SIP inflows were flat  in Jun ’22 at Rs122.8bn. Indian Mutual fund industry had witnessed a sharp rise in new account openings in 9MFY22,, However SIP inflows have stabilized over the past few months. SIP investor accounts were 55.4mn; up 1.1% MoM (+38% YoY) – this is slightly lower than the average MoM growth since Apr '19 of ~2.0%.






• 5. Direct Channel: Industry witnessed continued momentum in adoption of direct channel by retail customers. Share of equity-oriented MF AAUM originated through direct channel for retail customers increased to 18% in 2MFY23 from 14.4% in FY2021 and 8.3% in FY201

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