The assets under management of mutual funds hit a record high of Rs 37.73 lakh crore in 2021
Mumbai:
According to a Crisil report, the assets under management (AUM) of mutual funds hit a record high of Rs 37.73 lakh crore in 2021, up 22 per cent from the same period, due to increased inflows into equity-oriented funds. . ,
It further said that the net incremental inflow 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.
In percentage terms, AUM rose to 22 per cent in 2020 compared to 17 per cent, the report says, adding that the record number is attributed to inflows into equity-oriented funds, which held the lion’s share in the year in contrast to the previous year. Had given. year when it saw net outflow.
Crisil further said that while the net inflows in the last two years – when markets were at a high after the pandemic-induced bloodshed in the first half of 2020 – were almost the same at Rs 1.81 lakh crore, the plot lines were totally different looking at 2020. Considering sharp inflows into debt-oriented funds, and equity-oriented funds with the bulk of inflows in 2021.
To be sure, net inflows into debt-oriented funds in 2020 came despite the liquidity crunch, with outflows of Rs 1.94 lakh crore in March – the highest since September 2018 by IL&FS with an outflow of Rs 2.10 lakh crore. after the crisis.
On the other hand, open-ended debt-oriented funds saw an inflow of Rs 2.01 lakh crore in 2020, while equity-oriented funds saw a net inflow of just Rs 9,100 crore.
Hybrid funds also took a hit with outflows of over Rs 53,000 crore. However, due to inflows from institutional investors like Employees’ Provident Fund, passive funds continued to raise funds making a shortfall of Rs 62,000 crore.
Conversely, in 2021 investors put a substantial portion of their money in equity-oriented funds, attracted by strong gains in the underlying equity markets.
While equity funds got a net inflow of Rs 91,000 crore, passive funds came in Rs 1.14 lakh crore and hybrid funds Rs 1.02 lakh crore, with the latter two offering fresh funds in 41 and 8 funds respectively.
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