In addition, the net incremental inflow of A record even from the previous peak of Rs 6.70 lakh crore in 2021 4.80 lakh crore in 2017, and 4.5 lakh crore in 2020.
In percentage terms, AUM rose to 22 per cent in 2020 compared to 17 per cent, the report says, adding that the record number is attributed to inflows into equity-oriented funds, which held the lion’s share in the year in contrast to the previous year. Had given. year when it saw net outflow.
According to the report, while net inflows over the past two years – when markets were on a song after the pandemic-induced bloodbath in the first half of 2020 – were almost identical 1.81 lakh crore each, the plot lines were different with 2020 seeing sharper inflows into debt-oriented funds, and 2021 seeing larger inflows to equity-oriented funds.
To be sure, net inflows into debt-oriented funds in 2020 came despite the liquidity crisis as much as Outflow of Rs 1.94 lakh crore in March–highest since September 2018, out of which 2.10 lakh crore after the IL&FS crisis.
On the other hand, open-ended debt-oriented funds saw an influx of 2.01 lakh crore in 2020, even though equity-oriented funds saw net inflows 9,100 crores.
over. Hybrid funds also suffered a setback with 53,000 crore outflow. However, passive funds continued to raise funds, which decreased 62,000 crore led by inflow of institutional investors like Employees’ Provident Fund.
Conversely, in 2021 investors put a substantial portion of their money in equity-oriented funds, attracted by strong gains in the underlying equity markets.
While the net inflow of equity funds was 91,000 crore, passive fund seen 1.14 Lakh Crore Coming and Hybrid Funds 1.02 lakh crore, the latter two being increased by new fund offers in 41 and 8 funds respectively.
However, the poor performance of actively managed funds, especially in the large-cap space, fueled investor interest in passives.
On the other hand, net outflow of debt funds was seen 35,000 crore in 2021 as investors shunned amid sluggish returns or waited on the side lines hoping for an interest hike by the Reserve Bank, which never happened.
But the agency expects the central bank to continue to draw liquidity out of the system in a calibrated manner once the economic recovery shows some signs of recovery and the first such concrete move could begin next month with an expected reverse repo hike of 25 basis points. . Demand-side pressure on inflation began to mount in March in the form of a corridor and repo hike of 25 basis points.
As a result, it sees an upward trend in yields reducing the brightness of long-maturity debt funds, making short-maturity debt funds such as floating rate funds and roll-down strategy funds such as target maturity debt funds better bets. . for investors.
Meanwhile, the SIP recorded a net inflow of 1.14 lakh crore in 2021, crossed 1 lakh crore figure for the first time after Amfi declared this data.
Highest SIP inflows witnessed in December 2021 11,300 crore, and 11,000 crore figure in November. Number of SIP accounts also increased to 4.91 crore 5.65 lakh crore of industry assets in December.
ETFs became the largest MF category this year, while liquid funds lost their sheen, benefiting from strong inflows from EPFO and other pension trusts.
With new launches and individual investor interest, ETF assets overtook Liquid Funds as the largest MF category in 2021 and closed with AUM 3.84 lakh crore, as against 3.61 lakh crore for liquid funds.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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