Question 1

What is AUM and AAUM in mutual funds?

Accepted Answer

AUM (Assets Under Management) is the total market value of all investments managed by mutual funds at the end of a month. AAUM (Average AUM) is the daily average of AUM across the month — the official metric AMFI uses for regulatory filings and expense ratio calculations.

Question 2

How often does AMFI publish industry AUM data?

Accepted Answer

AMFI publishes the monthly industry report within the first 10 days of the following month. The report covers scheme-wise AUM, AAUM, net inflows, redemptions, and folio counts for every open-ended, close-ended, and interval scheme category.

Question 3

What is the net flow in mutual funds?

Accepted Answer

Net flow = Gross inflows minus redemptions in a given month. A positive net flow means more money entered the category than left it. Equity funds have shown consistently positive net flows since early 2021, indicating sustained investor confidence.

Question 4

Why do debt funds show negative flows in March and December?

Accepted Answer

Advance tax payment deadlines fall in March (Q4) and December (Q3). Corporates and HNIs redeem from liquid and money market funds to meet these tax obligations, causing predictable quarter-end outflows. This is a structural seasonal pattern, not a sign of distress.

Question 5

What is the stickiness score for mutual funds?

Accepted Answer

Stickiness score = net inflow ÷ gross inflow, expressed as a percentage. It measures how much of the money that flows into a category actually stays. ELSS and retirement funds score highest (60–85%) due to lock-ins. Liquid and overnight funds score near zero as money constantly cycles in and out for cash management.

Question 6

What is implied market return in this dashboard?

Accepted Answer

Implied market return = change in equity AUM minus net equity inflows for that month. If equity AUM grew by ₹30,000 Cr but net inflow was ₹25,000 Cr, the market itself added ₹5,000 Cr. This is a unique derived metric showing what markets actually contributed to fund growth, independent of SIP flows.

MF Industry Pulse