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Thursday, August 14, 2014

Assets of Mutual Fund Industry rises by 3% in July 2014 on Sequential Basis

Liquid funds witness highest inflows

Total Assets Under Management (AUM) of the mutual fund (MF) industry increased by 3.3% (by Rs 31737 crore) to Rs 10.06 lakh crore in July 2014 after witnessing 3.6% fall (by Rs 36387 crore) to Rs 9.75 lakh crore in June 2014. The AUM of all categories witnessed rise expect for Income, Gold ETF and Fund of Funds Investing Overseas categories. 

Income, Gold ETF and Fund of Funds Investing Overseas categories witnessed net outflows, while all the other categories witnessed net inflows. Moreover, liquid funds saw highest inflows, while equity funds registered inflows for the fourth consecutive month. However, AUM of the industry grew by 32% (or by Rs 2.46 lakh crore) YoY in July. 

Net inflow from the industry stood at Rs 26847 crore in July, as against net outflow of Rs 59726 crore in June 2014. The inflows can be attributed to the money flowing back after redemption's in last month on account of advance tax payments and fiscal end requirements.
Funds mobilized from 30 newly launched schemes in July stood at Rs 2551 crore, out of which Rs 2286 crore came from 27 income funds (26 close ended and 1 open ended) and Rs 254 crore came from 2 equity scheme (Birla Sun Life Emerging Leaders Fund - Series 3, Sundaram Top 100 Series III). 

Equity & Debt Investments by Mutual Funds

Domestic mutual funds turned out to be net buyers in equity in July 2014. Mutual Funds were net buyers in equities worth Rs 5063.8 crore in July 2014, as against net buying of Rs 3339.6 crore in May 2014. Of the 22 trading sessions in July, mutual funds were net buyers in equity in 15 sessions, while they were net sellers in the remaining 07 sessions. Net selling in equity was recorded highest at Rs 263.3 crore on 08 July 2014 while net buying recorded high at Rs 1454.1 crore on 31 July. 

Mutual Funds were net buyers to the tune of Rs 18787.1 crore in July 2014. Out of the 22 trading sessions in July, mutual funds were net buyers in debt instruments in 12 sessions, while they were net sellers in the remaining 10 sessions. Net selling in debt was recorded highest at Rs 3351.3 crore on 11 July 2014 while net buying recorded high at Rs 4831.3 crore on 04 July.

 




Equity Funds Assets rise
 
AUM of equity funds increased 5% (by Rs 10519 crore) to Rs 2.21 lakh crore in July 2014 over June 2014. The assets of equity-linked saving schemes (ELSS) increased by 0.3% (by Rs 87 crore) to Rs 30317 crore. Meanwhile, Equity Funds registered a net inflow of Rs 10815 crore for the month and ELSS Funds saw net inflow to a tune of Rs 30 crore. Thus, total equity funds witnessed net inflow of Rs 10845 crore. AUM of equity funds increased mainly due to the mark to market gains in the broad market.

Net inflows in equity funds totaled to Rs 20784 crore in FY15 till July 2014. This is higher than net outflows of Rs 1652 crore in the corresponding period of previous year.

The weightage of equity funds increased to 22% of the total assets of the industry in July 2014 as compared to 19% in July 2013 and 22% in June 2014.

Net outflows from ELSS totaled to Rs 924 crore in FY15 till July 2014, which is higher than net outflows of Rs 877 crore in the corresponding period of previous year. The weightage of ELSS category, of the total assets of the industry stood at 3% in July 2014, unchanged from June 2014 and July 2013. 

Liquid Funds

AUM of Liquid Funds increased by 13.1% (by Rs 28225 crore) to Rs 2.44 lakh crore primarily due to net inflows of Rs 25589 crore, which is the highest in four months of FY15, as corporates ploughed the surplus money back into the funds that were withdrawn in June due to advance tax payout. 

On YoY basis, its assets increased by 89.3%. Liquid and money market schemes have seen net inflows of Rs 1.04 lakh crore in FY15 till July 2014, which was higher than net inflows of Rs 16846 crore in the corresponding period of previous year . 

The weightage of liquid funds, of the total assets of the industry stood at 24% in July 2014, which rose from 22% in June 2014, and from 17% in July 2013.

Income Funds 

AUM of Income Funds decreased by 1.5% (by Rs 7331 crore) to Rs 4.72 lakh crore. Moreover, this category witnessed net outflow of Rs 10080 crore. Out of the 30 new fund offers from mutual funds during the month, close ended income schemes accounted for 27 new fund launches. Open ended income funds have seen net outflows of Rs 4230 crore, and there was net outflows of Rs 4926 crore in close ended income funds and Rs 924 crore net outflows were recorded in interval income funds. 

Net outflows from income funds totaled to Rs 8604 crore in FY15 till July 2014, which is lesser than net inflow of Rs 33920 crore in FY14 till July 2013. The weightage of income funds, of the total assets of the industry stood at 47% in July 2014, which is lower from 49% in June 2014 and 57% in July 2013. 

Gold ETF

AUM of Gold ETF decreased by 2.1% (by Rs 170 crore) to Rs 7773 crore in July 2014 after rising June 2014 On YoY basis, assets of this category decreased by 27.1%. The category witnessed outflows for the sixth consecutive month to a tune of Rs 105 crore. 

Net outflows from Gold ETF totaled to Rs 819 crore in FY15 till July 2014, which is higher than net outflows of Rs 344 crore in the corresponding period of previous year. 

Gilt Funds

AUM of Gilt Funds increased by 2.8% (by Rs 153 crore) to Rs 5645 crore in July and the category reported net inflow of Rs 110 crore after recording net outflow for the last six consecutive months in CY14. 

Meanwhile, the AUM declined by 31.2% on YoY basis. Net outflows from gilt funds totaled to Rs 792 crore in FY15 till July 2014, compared with net inflows of Rs 252 crore in the corresponding period of previous year. 

Balanced Funds
Assets of balanced funds increased by 1.9% (by Rs 303 crore) in July to Rs 16217 crore when compared on sequential basis, and increased by Rs 1060 crore or by 7% when compared with the same period of the previous year. Moreover, this category had witnessed net inflow of Rs 348 crore in July.

Net inflows in this category totaled to Rs 342 crore in FY15 till July 2014, which is higher than net outflows of Rs 476 crore in FY14 till July 2013.

Fund of Funds Investing Overseas

The total AUM of Fund of Funds Investing Overseas decreased by Rs 92 crore on sequential basis and increased by Rs 1066 crore or by 51.5% when compared with same period of the previous year. 

Net outflows in this category totaled to Rs 177 crore in FY15 till July 2014, which is higher than net inflows of Rs 24 crore in FY14 till July 2013.

Other ETFs

Other Exchange Traded Funds (ETFs) has witnessed net inflow of Rs 211 crore in July as against net outflow of Rs 133 crore in June 2014. Net outflow from this category totaled to Rs 559 crore in FY15 till July 2014, compared with net outflows of Rs 101 crore in corresponding period of FY14.

The total AUM of Other ETFs increased by Rs 35 crore or by 0.7% to Rs 5083 crore on sequential basis, and increased by Rs 3689 crore when compared with same month of the previous year.

Category Net Flows (Rs. Cr)
Jul-14 Jun-14 FY2015 FY 2014
Income -10080 1307 -8604 33920
Infrastructure Debt Funds 0 0 188 0
Equity 10815 7309 20784 -3705
Balanced 348 185 342 -476
Liquid / Money Market 25589 -67697 103777 16846
Gilt 110 -211 -792 252
ELSS - EQUITY 30 -156 -924 -877
Gold ETF -105 -227 -819 -344
Other ETFs 211 -133 -559 -101
Fund of Funds Investing Overseas -71 -103 -177 24
Total 26847 -59726 113216 45539

Category Assets Under Management (AUM) * % Change
Jun-14 Jul-14 Change
Income 478982 471651 -7331 -1.5
Infrastructure Debt Funds 1091 1099 8 0.7
Equity 210794 221313 10519 5.0
Balanced 15914 16217 303 1.9
Liquid 215995 244220 28225 13.1
Gilt 5492 5645 153 2.8
ELSS - Equity 30230 30317 87 0.3
Gold ETF 7943 7773 -170 -2.1
OTHER ETFs 5048 5083 35 0.7
Fund Of Funds Investing Overseas 3226 3134 -92 -2.85
TOTAL 974715 1006452 31737 3.3
*Rs. Crore

Category Assets Under Management (AUM) * % Change
Jul-14 Jul-13 Change
Income 471651 431733 39918 9.2
Infrastructure Debt Funds 1099


Equity 221313 140936 80377 57.0
Balanced 16217 15157 1060 7.0
Liquid 244220 129000 115220 89.3
Gilt 5645 8203 -2558 -31.2
ELSS - Equity 30317 21673 8644 39.9
Gold ETF 7773 10669 -2896 -27.1
OTHER ETFs 5083 1394 3689 264.6
Fund Of Funds Investing Overseas 3134 2068 1066 51.5
TOTAL 1006452 760833 245619 32.3
*Rs. Crore
  

Transactions by mutual funds in July 2014

Equity (Rs in crore) Debt (Rs in crore)
Transaction Date Gross Purchases Gross Sales Net Purchases / Sales Gross Purchases Gross Sales Net Purchases/ Sales
01-Jul-14 811.2 1033.3 -222.2 2168.6 463.9 1704.7
02-Jul-14 808.2 736.2 72 7654.4 3791.8 3862.6
03-Jul-14 565.9 786.1 -220.2 7905.9 3924.9 3981
04-Jul-14 645.8 738.9 -93.1 7535.3 2704 4831.3
07-Jul-14 1130.1 783.3 346.9 9334.8 5615 3719.8
08-Jul-14 739.5 1002.8 -263.3 5768.3 4003.3 1765
09-Jul-14 843.1 795 48.1 4070.3 4836.3 -766
10-Jul-14 860 981.9 -121.9 4726.3 5909.8 -1183.5
11-Jul-14 992.9 833.9 159 3086.7 6438 -3351.3
14-Jul-14 1258.5 544.2 714.3 8461.9 8581.3 -119.4
15-Jul-14 950.2 352.8 597.4 3291.3 4822.1 -1530.8
16-Jul-14 1048.8 656 392.8 3689.8 3683 6.8
17-Jul-14 942.5 599.4 343.2 6630 3338.1 3291.9
18-Jul-14 567.3 599.2 -31.9 9097.9 5298.8 3799.1
21-Jul-14 543.6 578.7 -35.2 4459.6 2377.3 2082.3
22-Jul-14 881.9 595 286.9 5689.9 4132 1557.9
23-Jul-14 723.7 623 100.8 4074 4377.9 -303.9
24-Jul-14 779 524.5 254.5 4626.5 7434.1 -2807.6
25-Jul-14 930 831.7 98.3 5447 7499 -2052
28-Jul-14 953.6 660.5 293.1 3992.8 4300.3 -307.5
30-Jul-14 2033.2 1143 890.2 7611.2 7786.2 -175
31-Jul-14 2517.5 1063.4 1454.1 9094.3 8312.6 781.7
Total for July 21526.5 16462.8 5063.8 128416.8 109629.7 18787.1

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