Possessions under management of shared funds increased to a record high of Rs 37.73 lakh crore in 2021Mumbai: Led by an increase in inflows into equity-oriented funds, possessions under management (AUM) of mutual funds increased to a record high of Rs 37.73 lakh crore in 2021, up by 22 per cent from the matching duration, according to a report by Crisil.It even more said that the net incremental inflow of Rs 6.70 lakh crore in 2021 is likewise a record over the previous peak of Rs 4.80 lakh crore in 2017, and Rs 4.5 lakh crore in 2020.
In portion terms, the AUM increased as much as 22 percent compared to 17 percent in 2020, says the report which associates the record numbers to the inflows into equity-oriented funds which hogged the lion's share in the year, unlike in the previous year when it saw net outflows.Crisil even more stated that while net circulations in the previous 2 years - when the marketplaces were on a high after the pandemic caused bloodbath in the very first half 2020 - were comparable at around Rs 1.81 lakh crore each, the plot lines were starkly various with 2020 seeing sharp inflows into debt-oriented funds, and 2021 seeing equity-oriented funds cornering the bulk of inflows.To be sure, net inflows into debt-oriented funds in 2020 came in spite of the liquidity crisis, with as much as Rs 1.94 lakh crore of outflows in March - the greatest given that September 2018 with an outflow of Rs 2.10 lakh crore following the IL&FS crisis.On the other hand, open-ended debt-oriented funds saw inflows of Rs 2.01 lakh crore in 2020 even as equity-oriented funds saw net inflows of just Rs 9,100 crore.Hybrid funds also took a beating with over Rs 53,000 crore outflows.
However, passive funds continued to gather cash, lapping up Rs 62,000 crore, led by inflows from institutional investors like the Workers' Provident Fund.In contrast, 2021 saw financiers put a bigger amount of their money in equity-oriented funds, drawn by the strong gains in the underlying equity markets.While equity funds got net inflows of Rs 91,000 crore, passive funds saw Rs 1.14 lakh crore being available in and hybrid funds Rs 1.02 lakh crore, with the latter 2 enhanced by a wave of brand-new fund uses, at 41 and 8 funds, respectively.