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Posted at: Nov 8, 2019, 4:57 PM; last updated: Nov 8, 2019, 4:57 PM (IST)

Mutual fund AUM rises 7.4% to Rs 26.33 lakh crore in Oct

Mutual fund AUM rises 7.4% to Rs 26.33 lakh crore in Oct
Photo for representational purpose only. Thinkstock

New Delhi, November 8

Mutual funds’ asset base increased to Rs 26.33 lakh crore in October-end, a rise of 7.4 per cent as compared with the preceding month, on the back of robust inflows in equity and liquid schemes.

The 44-player industry logged an asset under management (AUM) of Rs 24.5 lakh crore in September-end, according to data from the Association of Mutual Funds in India (Amfi).

Mutual fund houses witnessed an overall inflow of Rs 1.33 lakh crore last month after witnessing a redemption of Rs 1.52 lakh crore in September. Of these, liquid funds alone witnessed an impressive over Rs 93,200 crore last month.

Fund managers attributed growth in the asset base to higher retail participation and robust inflows in equity schemes and liquid funds.

The open-ended equity schemes witnessed an infusion of Rs 6,026 crore, while there was a small outflow of Rs 11 crore in close-ended equity plans, taking total equity inflows to Rs 6,015 crore last month. In September, net inflow in such schemes stood at Rs 6,489 crore.

Himanshu Srivastava, senior analyst manager research, Morningstar Investment Adviser India said net inflows continue to pour into the equity-oriented mutual fund schemes tracking the surge in the domestic markets. In the month of October, the category received slightly lower inflow compared to September. The inflow indicates building up of a positive investment trend.

“Series of steps taken by the government in the recent times to boost domestic economy had improved sentiments and helped the markets to surge. This has helped investors slowly gain confidence and get back to investing. Additionally, the steady flow through SIP (Systematic Investors Plan) is also keeping the momentum going,” he added.

Among debt-oriented schemes, liquid funds with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon saw an infusion of Rs 93,203 crore last month as compared to an outflow of Rs 1.4 lakh crore in September.

Overall, debt funds saw an inflow of Rs 1.2 lakh crore.

Besides, gold exchange-traded funds saw an outflow of Rs 31.45 crore after witnessing inflow in the preceding two months. The safe-haven asset saw an infusion of Rs 44 crore in September and Rs 145 crore in August.

Inflows in mutual funds (MFs) through SIPs in October stood at Rs 8,246 crore, a slight fall as compared with Rs 8,263 crore a month ago.

“SIP AUM crossing the Rs 3 trillion landmark for the first time ever and the continual rise in SIP accounts are a positive reflection of disciplined approach adopted by the retail investor fraternity,” Amfi Chief Executive Officer N S Venkatesh said.

G Pradeepkumar, CEO, Union Asset Management Company said, SIP flows have remained robust even in the face of continued volatility in the market which augurs well for the mutual fund industry as well for the broader markets.

“It is also encouraging that there has been about 65 per cent increase in the number of new SIPs added. Arbitrage funds as a category seem to be continuing to attract investor attention probably on account of their relatively stable returns and tax efficiency,” he added.

Going ahead, Venkatesh said that equity markets are expected to perform better in the coming quarter positive impact as government initiatives trickles down in the economy, which will drive further inflows in mutual funds. PTI

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