Mutual fund-managed assets surged to a record high of Rs 37.73 lakh crore in 2021
Mumbai:
Led by an increase in inflows into equity-oriented funds, the assets under management (AUM) of mutual funds rose to a record high of Rs 37.73k in 2021, a 22% increase from respective periods, according to a report by Crisil.
It also adds that incremental net cash flow of Rs 6.70 lakh crore in 2021 is also a record from the previous peak of Rs 4.80 lakh crore in 2017 and Rs 4.5 lakh crore in 2020. .
As a percentage, AUM is up 22% from 17% in 2020, report says record numbers of inflows into equity-oriented funds, which have attracted the biggest market share of the year , unlike the previous year when net cash outflow.
Crisil added that while net outflows over the past two years – when markets were at their highs after the bloodbath caused the pandemic in the first half of 2020 – were similar at around Rs 1.81 lakh crore per year, The plot lines are completely different from 2020. Capital flows are strong in debt-oriented funds, and 2021 sees equity-oriented funds attract the majority of capital inflows.
To be sure, net inflows into debt-oriented funds in 2020 come despite the liquidity crunch, with Rs 1,94 lakh outflows in March – the highest since September 2018 with outflows of 2, Rs 10 lakh after the IL&FS crisis.
On the other hand, open-ended debt-oriented funds have seen inflows of Rs 2.01 lakh crore in 2020 even as equity-oriented funds have net inflows of just Rs 9,100.
Hybrid funds also took a hit with over Rs 53,000 in capital outflows. However, passive funds continued to make money, reaching Rs 62,000 crore, led by inflows from institutional investors such as the Employee Endowment Fund.
In contrast, 2021 sees investors placing a larger amount of their money in equity-oriented funds, attracted by strong returns in the underlying equity market.
While the equity funds received a net inflow of Rs 91,000 crore, the passive funds saw Rs 1.14 lakh crore arrival and the mixed funds Rs 1.02 lakh crore, with the latter two being promoted. by a series of new funds, 41 and 8 respectively.
