AUM Accretion February 2025 – Net flows versus Price Spike

17 Mar 2025 , 09:56 AM

AUM ACCRETION – FEBRUARY 2025 MACRO STORY

What was the quality of the AUM shift between February 2025 and February 2025? In this period; the AUM of open-ended funds came down from ₹66.99 Trillion to ₹64.27 Trillion. That is AUM depletion of ₹(2,71,636) Crore on MOM basis. However, in February 2025, open-ended funds had seen overall net inflows of ₹40,077 Crore. This effectively means the negative impact of price depletion on AUM in February 2025 was ₹(3,11,713) Crore. It was a month when equity flows were strong, but equity depletion erased it many times over.

AUM  ACCRETION OF ACTIVE DEBT FUNDS – FEBRUARY 2025

In February 2025, debt fund marginal outflows, but also saw price appreciation.

Active Debt Market Funds	Net Inflow in the Fund	AUM Closing Value	AUM Accretion	Price Accretion	Price Move Dominance
Short Duration Fund	729.17	1,13,223.60	1,274.84	545.67	42.80%
Corporate Bond Fund	1,064.84	1,74,014.83	1,780.23	715.40	40.19%
Liquid Fund	4,976.97	5,67,506.10	8,113.40	3,136.43	38.66%
Banking and PSU Fund	473.53	79,442.62	761.90	288.37	37.85%
Long Duration Fund	-163.29	20,329.30	-226.76	-63.47	27.99%
Gilt Fund	-278.30	40,749.34	-374.76	-96.46	25.74%
Medium to Long Duration Fund	56.20	11,667.60	69.08	12.88	18.65%
Gilt Fund with 10-Y duration	87.63	4,948.97	98.34	10.71	10.89%
Ultra Short Duration Fund	-4,281.02	1,07,720.23	-3,682.48	598.55	-16.25%
Overnight Fund	-2,263.94	91,908.70	-1,773.56	490.38	-27.65%
Low Duration Fund	-2,824.60	1,13,394.63	-2,187.46	637.15	-29.13%
Dynamic Bond Fund	-108.04	35,317.35	-70.71	37.33	-52.80%
Money Market Fund	-3,275.97	2,51,863.55	-1,845.92	1,430.05	-77.47%
Credit Risk Fund	-197.89	20,541.66	-59.56	138.33	-232.26%
Medium Duration Fund	-178.23	24,940.04	-38.69	139.53	-360.60%
Floater Fund	-342.61	50,543.16	-41.36	301.25	-728.28%
Active Debt Funds	-6,525.56	17,08,111.68	1,796.54	8,322.10	463.23%

Data source: AMFI (absolute figures are ₹ in Crore)

The 5 categories at the centre; medium to long duration funds, Gilt Funds with 10-year duration, ultra short duration funds, overnight funds, and low duration funds; saw least price impact. Overall, net AUM accretion of active debt mutual funds in February 2025 stood at ₹1,796 Crore. This was composed of ₹(6,526) Crore of net outflows, while the price impact made a positive contribution of ₹8,322 Crore. Bulk of the price accretion effect came liquid funds and money market funds, largely due to the liquidity tightness in the markets.

AUM  ACCRETION OF ACTIVE EQUITY FUNDS – FEBRUARY 2025

In February 2025, equity fund saw strong inflows but price depletion was intense.

Active Equity Market Funds	Net Inflow in the Fund	AUM Closing Value	AUM Accretion	Price Accretion	Price Move Dominance
Flexi Cap Fund	5,104.22	4,06,429.75	-22,698.47	-27,802.69	122.49%
Multi Cap Fund	2,517.69	1,61,176.45	-12,589.47	-15,107.16	120.00%
Focused Fund	1,287.72	1,35,017.51	-7,432.72	-8,720.44	117.32%
Sectoral/Thematic Funds	5,711.58	4,27,155.59	-33,765.01	-39,476.59	116.92%
Large Cap Fund	2,866.00	3,35,387.55	-18,978.28	-21,844.28	115.10%
Large & Mid Cap Fund	2,655.97	2,42,809.17	-18,019.18	-20,675.15	114.74%
Value Fund/Contra Fund	1,347.42	1,71,918.93	-11,380.98	-12,728.40	111.84%
Small Cap Fund	3,722.46	2,73,877.21	-31,702.96	-35,425.43	111.74%
Mid Cap Fund	3,406.95	3,40,656.70	-32,527.53	-35,934.47	110.47%
ELSS	614.70	2,16,623.25	-15,568.40	-16,183.10	103.95%
Dividend Yield Fund	68.65	28,674.17	-2,374.93	-2,443.58	102.89%
Active Equity Funds	29,303.34	27,39,726.26	-2,07,037.94	-2,36,341.28	114.15%

Data source: AMFI (absolute figures are ₹ in Crore)

The low variance in the Price Dominance column indicates that impact of price depletion was uniform across equity fund categories. Overall, net AUM depletion of active equity funds in February 2025 stood at ₹(2,07,038) Crore. This comprised of ₹29,303 Crore of net inflows into equity funds, but a negative price impact of ₹(2,36,341) Crore. Bulk of the price depletion effect came from flexi-cap funds, multi-cap funds, and sectoral / thematic funds.

AUM  ACCRETION IN HYBRID FUNDS – FEBRUARY 2025

In February 2025, hybrid fund saw healthy inflows but was offset by price depletion.

Hybrid and Solution Funds	Net Inflow in the Fund	AUM Closing Value	AUM Accretion	Price Accretion	Price Move Dominance
Multi Asset Allocation Fund	2,228.45	1,02,137.72	-1,673.86	-3,902.31	233.13%
Children’s Fund	137.16	20,919.15	-1,144.45	-1,281.60	111.98%
Equity Savings Fund	90.00	41,271.90	-889.52	-979.52	110.12%
Retirement Fund	109.03	27,498.74	-1,697.16	-1,806.18	106.42%
Dynamic Asset Allocation/BAF	664.41	2,72,448.64	-10,415.45	-11,079.86	106.38%
Balanced Hybrid Fund	310.13	2,07,879.45	-10,127.93	-10,438.06	103.06%
Conservative Hybrid Fund	-81.46	27,686.70	-485.31	-403.84	83.21%
Arbitrage Fund	3,592.33	2,00,651.39	346.65	-3,245.68	-936.30%
Hybrid Allocation Funds	7,050.03	9,00,493.69	-26,087.03	-33,137.06	127.03%

Data source: AMFI (absolute figures are ₹ in Crore)

The impact of price dominance was least on Conservative Hybrid Funds, which is due to its debt predominance. Overall, net AUM of hybrid funds in February 2025 depleted by ₹(26,087) Crore. This comprised of ₹7,050 Crore net inflows into hybrid funds (from multi-asset allocation funds), but steep negative price impact of ₹(33,137) Crore. Bulk of price depletion came from BAFs and Conservative Hybrid Funds due to high equity allocation.

AUM  ACCRETION IN PASSIVE FUNDS – FEBRUARY 2025

In February 2025, passive funds also saw strong inflows, but substantial price depletion.

Index and Passive Funds	Net Inflow in the Fund	AUM Closing Value	AUM Accretion	Price Accretion	Price Move Dominance
Index Funds	4,177.02	2,68,487.60	-7,632.88	-11,809.90	154.72%
Global Fund of funds	246.00	27,587.14	-477.93	-723.93	151.47%
Other ETFs	3,846.10	7,26,868.43	-36,034.31	-39,880.41	110.67%
GOLD ETF	1,979.84	55,677.25	3,837.86	1,858.01	48.41%
Passive Funds	10,248.96	10,78,620.41	-40,307.26	-50,556.23	125.43%

Data source: AMFI (absolute figures are ₹ in Crore)

Here is what we read from the AUM shift of passive equity funds in February 2025. Overall, the net AUM accretion of passive funds in February 2025 stood at ₹(40,307) Crore. This comprised of ₹10,249 Crore of net inflows into passive funds, but negative price impact of ₹(50,556) Crore. Bulk of the price depletion effect came from index funds and index ETFs; while gold funds were relatively immune.