The growth was highest in three quarters, shows data released by the Association of Mutual Funds in India (Amfi).
The growth was supported by strong inflows across categories in a quarter where there were mark-to-market losses in equity schemes owing to market correction, especially in the largecap segment. Some of the debt schemes also witnessed correction.
In the first two months (July and August) of Q2, investors poured a net ₹54,000 crore into active equity schemes. Overall, across categories, the net inflows stood at ₹2.8 trillion during the two-month period. Debt funds garnered the most of the inflows.
The September inflows are yet to be released.
According to experts, while the debt fund inflows were led by short-term institutional investments, the active equity fund inflows were driven by systematic investment plan (SIP) inflows.
“SIPs alone have been accounting for the bulk of equity inflows. Since SIP collections happen right through the month, it adds up to the average AUM even more due to the market volatility. The markets corrected heavily only in largecaps in the last two weeks of September (July was in fact positive) and hence did not affect the average AUM so much. Corporate liquidity into short-term debt funds also aided the average AUM,” said Sunil Subramaniam, founder & chief executive officer, Sense and Simplicity.
Hybrid funds and passive funds also attracted nearly ₹10,000 crore each in the past two months.