Jun 13, 2017 3 min read

Mutual Fund AUM Reached Rs.19.04 Crore! Is It Beneficial for You?

The growth of mutual fund industry is at its vital stage, be ready to book your profits.
AUM, i.e., the Asset Under Management, is the amount invested by various investors in the mutual funds which is managed by different fund houses to fetch growth of capital. It is often told that the investors must check the AUM of the AMCs before investing as it demonstrates the trust of the investors in that particular fund house. Higher AUM means that more number of investors have parked their money in them, and the AMC has a great possession in the mutual fund industry.

Now, when the AUM of the mutual fund industry has reached up to Rs.19.04 lakh crore as of May 2017, it is no wonder that the industry has gained a huge ground in terms of investments and earned tremendous growth in the past few years. The reason for the same is the awareness and initiatives taken by various AMCs and regulatory authorities to let investors know the essence of mutual funds and put their money in them. Further, the industry has witnessed the ‘Net Outflow’ amounting to Rs.40.711 crore in May 2017. Before we take an analysis of the industry and understand how this growth will benefit you, let us take a glance at the highlights of the inflows and outflows in the mutual funds until now.

The categories with monthly net inflows in May 2017 are:

  • The equity funds have witnessed the highest inflow of money since June 2015 at Rs.10,208 crore. It is the highest inflow for the month and 2.40 times more than that of May 2016.
  • The balanced fund witnessed the all-time monthly high inflow at Rs.7,663 crore.
  • The debt or income funds had an inflow amounting to Rs.5,124 crore which is less that the previous month.
  • ELSS showed an inflow of Rs.531 crore, which is better in comparison with the inflows seen during the first six months of the financial year 2016-17.
  • The other ETF showed Rs.584 crore net inflow in the month of May 2017.

While considering the net outflows in the industry for May 2017, the following figures have pertained:

  • The liquid funds saw higher outflow of the month at Rs. -64,692 crore which is in line with the trend seen in the last financial year.
  • The other categories which showcased the outflows include FOFs Overseas, Gold ETFs, and gilt funds.
  • The NFO, i.e., New Fund Offer sales for the month of May 2017 stood at Rs.5,876 crore where 37% are in the equity funds, while the remaining 63% is from the debt schemes.

With the above figures, one can easily contemplate that irrespective of the volatility in the market, the equity investments have been on a higher trend. With the expansion of the mutual fund industry, the investors are expected to earn riches very soon. In the past, when investors used to stay away from the mutual funds due to the volatility factors, they are now finding more interest in them because of the unexpected growth and excellent returns generated by them.

Are You Still Away From Its Benefits?

If you haven’t started investing in the mutual funds in India yet, then you are definitely missing the greatest opportunities of the market. As we know that when a company grows, it takes all the stakeholders along with. Similarly, the growing mutual fund industry is all set to take its investors to a great height of success. These figures just not tell about the status of different assets in the market, but are evident that various investors have tied up with the mutual funds to lead their investments in a better way.

The trend of online mutual fund investments has made it even more convenient for the investors to let their money work for them. You must not lag behind and should start your investments right away.

We, at MySIPonline, provide the best investment advice to the investors as per their investment goals and let them invest in the best recommended funds which are analysed by our core research team. Yes, making an investment is simplified now, and if you are detached from it, you are loosing something productive. Think about it and let your money act wisely by investing in the best mutual funds.