Equity AUM Reaches Rs 15 Trillion, Inflows Decelerate

The Nifty, after three consecutive months of decline, bounced back smartly in Jul'22 with 8.7% MoM gain - the highest since Dec'20, according to a report by Motilal Oswal.
The Nifty Midcap 100 (+12% MoM) outperformed the markets during the month. FIIs registered inflows of USD0.8b in Jul'22 after nine months of outflows totaling USD33.3b; YTD'CY22 outflows stood at USD25.4b. Domestic inflows decelerated to USD1.3b in Jul'22; YTD'CY22 inflows stood at USD27.6b

"After declining for two consecutive months, equity AUM (including ELSS and index funds) of domestic MFs reached new highs of INR15.2t (+10.3% MoM) in Jul'22 as markets rebounded after three months of decline. Notably, the month saw a decline in sales of equity schemes (down 14.3% MoM to INR304b)," Motilal Oswal Financial Services has said in a report.

The pace of redemptions picked up to INR148b (up 16% MoM). Consequently, net inflows slowed to INR157b in Jul'22 from INR228b in Jun'22. Total AUM for the MF industry increased to INR37.7t (5.9% MoM) in Jul'22 - primarily led by a rise in AUM for equities (INR1,412b), other ETFs (INR380b), balanced (INR210b), and income (INR179b) funds . Contributions in systematic investment plans (SIPs) remained strong at INR121.4b in Jul'22 - an eleventh consecutive month of INR100b plus investment in the category.