Debt MFs Saw Surge In Outflows At Rs1.07 Trillion

On a month-on-month basis, the net AUM increased by nearly 4 percent (3.82 percent) from Rs 58.91 lakh crore in May 2024

Ashwini Kumar, Head- Market Data, ICRA Analytics

FinTech BizNews Service

Mumbai, July 10, 2024: The Association of Mutual Funds in India (AMFI) released on Tuesday the Mutual Fund Industry Monthly Data for June 2024. Ashwini Kumar, Head- Market Data, ICRA Analytics, the wholly owned subsidiary of ICRA Ltd, has shared his insights on the AMFI data of the month of June, 2024:

“Just six months after it crossed the historic Rs 50 lakh crore (Rs50 Trillion ) mark in December 2023, the net Asset under Management (AUM) of the Indian mutual fund industry has surpassed Rs 60 lakh crore mark in June 2024. The net AUM increased by nearly 38 percent (37.76 percent) to touch Rs 61.16 lakh crore in June 2024, up from Rs 44.39 lakh crore in June 2023. On a month-on-month basis, the net AUM increased by nearly 4 percent (3.82 percent) from Rs 58.91 lakh crore in May 2024. After two successive months of higher inflows, the mutual fund industry witnessed net outflows to the tune of Rs 43,637 crore for the first time since the beginning of this financial year.    

Equity mutual funds witnessed a whopping 370 percent rise in inflows at Rs 40,608.19 crore in June 2024, as against Rs 8637.49 crore in June 2023. Domestic equity markets witnessed some initial volatility ahead of the outcome of the general elections. However, markets rebounded sharply on hopes of political stability and policy continuity. Gains were extended after India's GDP growth came better than expectations and stood at 7.8% in the fourth quarter of FY24. Market sentiments were further boosted after the Reserve Bank of India upgraded the GDP growth rate of the domestic economy to 7.2% from 7.0% for FY25 even though it kept the key policy repo rate unchanged.

Debt mutual funds, however, witnessed a surge in outflows at Rs 1.07 lakh crore with 12 out of 16 schemes registering net outflows in June 2024. Bond yields also rose initially and witnessed volatility amid the outcome of general elections, however, the trend reversed, and bond yields fell following decline in U.S. Treasury yields that boosted expectations of rate cuts as well as supported by Indian bonds inclusion in JP Morgan Emerging Market index."


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