Eq­uity funds con­tinue to see in­flows de­spite volatile Oc­to­ber

At ₹22.23 lakh crore, MFs as­set grow a tad

The Hindu Business Line - - MARKET WATCH - SURESH P IYENGAR

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.

Pos­i­tive trend

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.

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