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The net monthly flows in debt mutual funds rose from Rs 43,431 crore in April 2020 to Rs 94,224 crore in May 2020, according to a tweet put out by the Association of Mutual Funds of India (Amfi). The jump of Rs 50,793 crore is more than a 100 per cent growth in monthly flows.
However, it is unclear how much of this money has come into the relatively low-risk categories of liquid and overnight funds and how much into categories like credit risk funds that saw huge redemption in the past few months. The total debt fund assets under management (AUM) at the end of April 2020 was Rs 7.44 trillion, and May’s inflow of Rs 94,224 crore has resulted in a 12 per cent jump in assets.
AUM data on categories other than liquid and overnight funds is disclosed on a daily basis and gives a rough idea of flows in individual categories. An increase in AUM happens due to flows and returns but returns are a relatively small component on a monthly basis, especially in debt funds. On the other hand, relatively low-risk categories saw increases in AUM. Money market funds saw an AUM increase of Rs 7,014 crore, banking and PSU funds saw an AUM increase of Rs 9,529 crore and corporate bond funds saw an AUM rise of Rs 4,819 crore.
