The Free Press Journal

Mutual fund schemes garner Rs 51,000-crore inflow in Oct

- AGENCIES

Investors pumped over Rs 51,000 into various mutual fund schemes in October after pulling out more than Rs 16,000 crore in the preceding month, according to the latest data from industry body Associatio­n of Mutual Funds in India (AMFI). With the latest inflow, total infusion in MF schemes has crossed Rs 2.5 lakh crore in the first seven months (April—October) of the ongoing financial year, the AMFI noted.

"Mutual fund industry has been among the biggest beneficiar­ies of demonetisa­tion that resulted in low interest rates on bank deposits. The move also helped investors to shift from physical assets to financial savings. Years of perseveran­ce by industry players and the regulator seems to have paid off, finally. "The fiscal year may go down in history as the one when the proverbial change in savings habits of Indian households happened," Bajaj Capital CEO Rahul Parikh said.

According to the data, investors poured a net of Rs 51,148 crore in MF schemes in the previous month as compared to a pull out of Rs 16,604 crore in September. The latest inflow was driven mainly by contributi­ons from equity, equity linked saving schemes and income funds. Equity and equity linked schemes attracted Rs 16,000 crore and income funds received Rs 40,845 crore. Besides, close to Rs 6,000 crore was invested in balanced funds. In contrast, gold ETFs continued to see net outflows of Rs 34 crore. The inflow has also helped in pushing the assets under management of the 42 player mutual fund industry to an all-time high of Rs 21.41 lakh crore at the end of October from Rs 20.40 lakh crore at the end of September.

“We are particular­ly excited about the higher retail participat­ion that has contribute­d to this growth," Sharekhan Director – Investment Solutions- Stefan Groening said.

Going forward, Parikh said that digital investment platforms are going to be a big driver for the industry. "These platforms are the best bet to attract the young salaried generation of millennial - who otherwise are humongous spenders on gadgets, cars and bikes - and inculcate in them the virtues of saving and investing," he added.

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