Equity funds continue to see inflows despite volatile October
At ₹22.23 lakh crore, MFs asset grow a tad
The assets under management of the mutual fund industry were up by less than 1 per cent in October at ₹22.23 lakh crore against ₹22.04 lakh crore in September due to continuous outflow from income funds and a weak equity market.
However, inflow into equity schemes, including that of arbitrage funds and equity-linked saving schemes (ELSS), was up 31 per cent at ₹14,783 crore in October against ₹11,251 crore logged in the previous month, despite the volatility and concerns in the equity market. The BSE Sensex was down 5 per cent in October and 6 per cent in September.
In the last one year, the overall AUM is up 21 per cent from ₹21.41 lakh crore logged in October 2017.
Redemption from income funds was up 16 per cent at ₹37,642 crore against ₹32,504 crore logged in September. However, flows into liquid and money market funds turned positive with inflow of ₹55,296 crore against outflow of ₹2.11 lakh crore in September, according to data released on Friday by the Association of Mutual Funds in India.
The AUM in equity schemes, including arbitrage funds and ELSS, was down marginally at ₹7.99 lakh crore against ₹8.02 lakh crore, despite inflow through systematic investment plans increasing 3 per cent to ₹7,985 crore against ₹7,727 crore in September.
Assets under debt-oriented schemes, including income, liquid, infrastructure debt and gilt funds were up 3 per cent at ₹11.63 lakh crore against ₹11.28 lakh crore.
NS Venkatesh, Chief Executive Officer, AMFI, said inflows into equity schemes witnessed a positive trend for the 53rd consecutive month despite volatility in the equity markets.
In fact, he said, the average inflow of ₹7,500 crore a month which works out to ₹97,000 crore a year through SIPs has ensured that it makes up for the pull-out by foreign portfolio investors.
The perception on the debt market has turned to neutral from negative and it is just a matter of time before the entire outflow of ₹2.11 lakh crore in September returns, he added.
25% rise in folios
The total number of folios increased 25 per cent year-on-year to 7.9 crore in October, against 6.32 crore in the same month last year. The number of folios increased by 11.45 lakh folios on month-on-month basis in October with retail investors accounting for 10.59 lakh folios.