Stories
Mutual Fund AUM Drops in September Despite Record Equity Inflows
- •The mutual fund industry's closing AUM fell over five percent to Rs 82.6 lakh crore in September due to debt outflows and lower valuations.
- •Equity schemes saw strong momentum with net inflows rising to Rs 38,294 crore, a 30.6 percent increase from August.
- •Debt-oriented schemes faced heavy selling pressure with net outflows hitting Rs 1.8 lakh crore, driving the overall decline.
- •Total investor folios increased by 27.13 lakh to reach 28.62 crore, showing continued retail participation despite the drop in AUM.
Key Questions Answered
The mutual fund industry's closing AUM for September fell over five percent to Rs 82.6 lakh crore due to outflows from debt categories and lower mark-to-market valuations. ICRA Analytics reported an AUM drop of Rs 4.4 lakh crore, driven by industry-wide net outflows of Rs 1.3 lakh crore from short-duration debt and adverse market movements that overshadowed strong retail equity participation.
Equity schemes received net inflows of Rs 38,294 crore in September, rising by 30.6 percent compared to Rs 29,314 crore in August. Additionally, equity folios increased by 17.69 lakh during the month, with the strongest capital mobilisation seen in diversified and growth-oriented categories.
Income and debt-oriented schemes experienced heavy selling pressure, recording net outflows of Rs 1.8 lakh crore in September compared to Rs 9,225 crore in August. This single category surpassed the industry's overall net outflow because equity, ETFs, and other segments continued to receive subscriptions.
