Quarterly Data of Mutual Funds' Assets in India
(A new blog dated 18Jul2024 is available)
(Please check update 12May2023 at the end of the article; even though, the article was written on 21Apr2023, I've added a few updates at the end of this article with new data)
(Please check update 22Apr2023, at the end of this article, with new data of yearly growth rates for the past 22 years -- that is, since 2001)
In the past six to seven years, mutual fund industry in India has been able to grow their assets at a faster clip, though their return performance continues to disappoint the mutual fund unitholders.
But in financial year 2022-23, the growth of Indian MF industry slowed down to 4.9 percent (India's financial year starts in April and ends in March). The assets under management or AUM of all mutual funds (including equity, debt, hybrid, gold and others) has grown by 4.9 percent to Rs 39.42 lakh crore in FY 2022-23.
(the blog continues below)
-------------------
Related Blogs on Mutual Funds:
Who is Eating My Gold ETF Return?
-------------------
Table showing data of mutual funds' AUM for the past five quarters and their growth rates >
The above table reveals:
-- only select mutual fund category data is shown here
-- total AUM data is for all categories of mutual funds in India
-- the biggest AUM growth rate categories (among select MF categories) in FY 2022-23 are: 1) gilt funds, 2) multi-asset allocation and 3) equity small-cap funds
-- multi-asset allocation are funds that invest in a variety of asset classes, like, equity, debt and gold
-- the biggest decrease in growth rates are in the following categories: 1) debt floater, 2) arbitrage and 3) debt banking & PSU funds
-- total AUM of MF industry grew by 4.9 percent to Rs 39.42 lakh crore
-- Value Research
article dated 03Apr2023 reported record net inflows of about Rs 39,325
crore (image below) into debt mutual funds during the last week of March 2023
To Sum Up
The mutual fund industry has been facing a lot of challenges these days. The portfolio management services (PMS) industry is competing with mutual funds. The stock market has been moving in sideways in the past 18 months, dampening the sentiment of first time investors.
The enthusiasm of small and first-time investors too has tapered in the past one year due to lack of initial public offers and disappointment with recently listed IPOs in 2022.
The boost mutual funds got during the height of COVID-19 Pandemic has died down. In addition, the mutual fund industry has failed to generate superior returns to the unitholders / investors.
There are four listed asset management companies or AMCs from the mutual fund industry -- namely, Aditya Birla Sun Life AMC, HDFC AMC, Nippon Life India AMC and UTI AMC.
Even these listed AMC stocks have disappointed their shareholders, with their lacklustre performance -- their shares lost between 15 and 37 percent in the past one year.
- - -
P.S. 3 dt 12May2023: Table showing monthly AUM data of mutual fund industry with latest data as of 31Apr2023 > the data are some select MF categories >
In Apr2023, there was significant growth in AUM of categories, like, liquid fund, Aggressive hybrid, debt - floater, equity flexi-, large-, mid- and small-cap funds >
P.S. 2: Last-minute tax changes
to debt mutual funds taxation brought in by Gov't of India on 24Mar2023
will negatively impact inflows into debt mutual funds from 01Apr2023
onwards -- one more area of concern for the mutual fund industry in
India
P.S. 1: Table showing yearly AUM data of mutual fund industry growth for the past 10 years >
-- FY 2022-23 experienced lowest growth of 4.9 percent in AUM in the past 10 years, except for COVID-19 year of 2019-20
-- FY 2016-17 and 2020-21 are the two highest growth rate years, with rates of 42.3% and 41.2% respectively, in the past 10 years
-- MF industry's assets grew by a phenomenal 462 percent in the past ten years (between 31Mar2013 and 31Mar2023)
-- the compounded annual growth rate (CAGR) is 18.8 percent in the past 10 years
The following table gives details of AUM of MF industry since 2000 and the year-over-year growth rates >
The AUM data as on 31Mar2003 did not include AUM of SUUTI of Rs 29,635 crore -- it may be noted erstwhile Unit Trust of India (UTI) was, in Feb2003, bifurcated into UTI MF and SUUTI (Specified Undertaking of UTI).
During the UPA Government (2004-2014), the compounded annual growth rate of MF industry was 19.44 percent -- with absolute growth of 491 percent between 31Mar2004 and 31Mar2014. Let us see whether the NDA Government under PM Modi will surpass the CAGR in their 10-year period to be completed by roughly 31Mar2024.
-------------------
References:
excel file: AMFI monthly data
data from AMFI monthly data
-------------------
Read more:
When Is The Next Buyback Offer Likely To Be?
-------------------
Disclosure: I've vested interested
in Indian stocks and other investments. It's safe to assume I've interest in the financial instruments / products discussed, if
any.
Disclaimer: The analysis and
opinion provided here are only for information purposes and should not be construed
as investment advice. Investors should consult their own financial advisers
before making any investments. The author is a CFA Charterholder with a vested
interest in financial markets.
CFA Charter credentials - CFA Member Profile
CFA Badge
He blogs at:
https://ramakrishnavadlamudi.blogspot.com/
https://www.scribd.com/vrk100
Twitter @vrk100
No comments:
Post a Comment