India Mutual Fund Tracker - AUM Scale New Heights And Breach The Rs 43 Trillion Plus Level: Motilal Oswal

Motilal Oswal Report

The Nifty gained 2.6% month-on-month to 18,534 in May 2023, closing higher for the third consecutive month. The Nifty is up 3.4% in CY23 year-to-date. The benchmark index is now ~1% away from its all-time high of 18,888 recorded in December 2022.

The Nifty Midcap 100 (+6.2% month-on-month) and the Nifty Smallcap 100 (+5.1%) outperformed the Nifty-50 during the month. Foreign institutional investors remained net buyers for the third straight month at $5 billion in May 2023 (highest since Sep-22); year-to-date inflows stood at $5.1 billion.

Domestic institutional investors turned net sellers in May-23 at $0.4 billion, with year-to-date inflows at $10.5 billion. Equity assets under management for domestic mutual funds (including ELSS and index funds) increased 4.3% month-on-month to Rs 18.4 trillion in May 2023, fueled by a rise in market indices (Nifty up 2.6% month-on-month) and an increase in equity scheme sales (up 21% month-on-month to Rs 341 billion).

At the same time, redemptions spiked 36.6% month-on-month to Rs 311 billion. Consequently, net inflows dipped to a two-year low of Rs 30 billion in May-23.

Total AUM for the MF industry rose (3.8% month-on-month) to Rs 43.2 trillion in May-23, led by a month-on-month increase in AUM for equities (Rs 751 billion), liquid (Rs 547 billion), and other ETF (Rs 174 billion) funds.

AUM for income funds declined Rs 49 billion during the month. Investors continued to park their money in mutual funds, with inflows/contributions in systematic investment plans reaching a new high of Rs 147.5 billion in May-23 (up 7.4% month-on-month and 20% YoY).

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