Assets under management (AUM) of open-end funds rose to ₹37 lakh crores as of March 2022, up 23% from the March 2021 quarter, according to the latest Morningstar Report on India Domestic Fund Flows for the March 2022 quarter. The AUM was down marginally by 0.4% when compared with the December 2021 quarter.
The total AUM of open-end equity funds as of March 2022 was Rs. 13.65 lakh crores, up almost 39% compared to the March 2021 quarter. “Strong net inflows along with a strong market performance across all market caps resulted in the phenomenal rise in assets over the last year,” says the report. Open-end equity funds form nearly 37% of the total open-end fund universe.
While open-ended equity funds saw a net inflow of Rs. 63,057 crores, fixed-income funds witnessed net outflows of Rs. 1.18 lakh crores during the March 2022 quarter. According to the Morningstar Report, the ‘Other Schemes’ category, which comprises subcategories of ETFs (other and gold), index funds, and funds of funds overseas, continues to consistently gain traction. This category witnessed net inflows of Rs. 44,787 crores in the March 2022 quarter. The March 2022 quarter had new fund offerings (NFO) of 54 open-ended funds including ETFs and 11 closed-ended funds. Cumulatively, these funds garnered Rs. 20,018 crores at their inception.
As per the report, UTI MF with flows of Rs. 6,667 crores, Axis MF with Rs. 6,331 crores, Edelweiss MF with Rs. 5,061 crores and PGIM India MF with Rs. 4,681 crores were the asset management companies (AMCs) with the highest net inflows (open-end funds and ETFs) in the March 2022 quarter. A large part of the net inflows into UTI MF went into its liquid fund, money market funds (UTI Liquid Cash fund & UTI Money Market Fund) and UTI Sensex ETFs.
AMCs with the highest net outflows were HDFC MF with Rs. 32,674 crores, Aditya Birla Sun Life MF with Rs. 6,643 crores, and IDFC MF with Rs. 6,376 crores. A significant portfolio of outflows from HDFC MF came from HDFC Liquid Fund, HDFC Floating Rate Debt Fund, HDFC Corporate Bond Fund, among others.