MFs' AUM touches record-high of Rs 20 lakh crore in July

New Delhi: The mutual fund (MF) industry's asset base has touched a record high of nearly Rs 20 lakh crore at the July-end, mainly driven by fresh inflows in equity and debt segments.

The assets under management (AUM) of mutual fund industry rose from Rs 18.96 lakh crore at the end of June from Rs 19.97 lakh crore by the July-end, as per the data of Association of Mutual Funds in India (Amfi).

Asset base of the industry, comprising 42 players, had crossed the milestone of Rs 10 lakh crore for the first time in May 2014 and in a short span of less than three years, the AUM size almost doubled to touch Rs 19 lakh crore last month.

Industry experts attributed the monthly rise in asset base to inflows in income and equity categories. Besides, buoyant investor sentiment and phenomenal growth in systematic investment plans (SIPs) helped in the growth of assets under management.

Overall inflow in MF schemes stood at Rs 63,504 crore last month. Of this, income funds which invest in a combination of government securities saw inflow of more than Rs 60,000 crore. Further, equity and equity-linked saving scheme (ELSS) saw an infusion of Rs 12,727 crore.

However, the liquid funds or money market category -- with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon -- witnessed a pullout of over Rs 19,500 crore.

"Indian MF industry is going through a very exciting growth phase and advertising campaigns started by Sebi and Amfi have helped in increasing penetration of mutual funds," Vidya Bala, Head of MF Research at Fundsindia.com said.

She further said that SIPs have been the preferred route for many investors to invest in mutual funds. Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. The funds are invested in stocks, bonds and money market instruments, among others.