MF exposure in NBFCs grow 32.5 pc to reach Rs 2.77 lakh crore in May

New Delhi: The mutual fund exposure in the non-banking financial companies (NBFCs) grow 32.5 per cent to reach Rs 2.77 lakh crore in May, according to a new report.

This year-on-year growth was driven by commercial papers (CPs) and corporate debt, which remained over Rs 2 lakh crore for 14 consecutive months, according to a CareEdge Ratings report.

The previous records were Rs 2.69 lakh crore in April this year and Rs 2.64 lakh crore in July 2018.

However, the share of NBFC credit in total bank credit decreased from 9.3 per cent in May 2024 to 8.5 per cent in May this year, the data showed.

The mutual fund industry’s total assets under management (AUM) rose to Rs 72.2 lakh crore in May from Rs 70 lakh crore in April. The industry witnessed net inflows of Rs 29,108 crore during the month, with 65 per cent flows from the equity category, according to the latest AMFI data.

AUM of equity funds rose 4.83 per cent on-month to Rs 32.05 lakh crore, driven by positive flows and mark-to-market (MTM) gains. Flexi caps witnessed inflows of Rs 3,841 crore, the highest in the equity category for the third straight month.

Hybrid fund assets grew 4.43 per cent to Rs 9.55 lakh crore, driven by highest monthly net inflows for the category worth Rs 20,765 crore and MTM gains. Arbitrage funds witnessed the highest inflows within the category, amounting to Rs 15,702 crore.

Passive funds category witnessed net inflows of Rs 5,525 crore during the month, marking the 55th consecutive month of net inflows.

Gold exchange-traded funds (ETFs) witnessed net inflows during the month, compared with outflows in the previous two months, driven by geopolitical tensions, market volatility and rate cut expectations.

—IANS