MFs log Rs 2 lakh cr in­flows

The Hitavada - - BUSINESS -

IN­VESTORS have pumped in over Rs 2 lakh crore into var­i­ous mu­tual fund schemes in the first six months of the cur­rent fis­cal, with eq­uity and bal­anced funds ac­count­ing for most of the in­flows.

Ac­cord­ing to data from As­so­ci­a­tion of Mu­tual Funds in In­dia (Amfi), eq­uity and eq­uity linked schemes at­tracted over Rs 80,000 crore, and bal­anced funds re­ceived more than Rs 47,000 crore. Be­sides, Rs 28,600 crore was in­vested in liq­uid or money mar­ket fund cat­e­gory. In con­trast, gold ETFs con­tin­ued to see net out­flow of Rs 388 crore.

“The huge in­flow could be at­trib­uted into eq­uity, bal­anced and money mar­ket funds with ro­bust par­tic­i­pa­tion from re­tail and HNI in­vestors,” said An­shul Sai­gal, Port­fo­lio Man­ager at Ko­tak Mu­tual Fund.

Ba­jaj Cap­i­tal CEO, Rahul Parikh said that the In­dian in­vestors had now as­sim­i­lated mu­tual funds and the credit went to aware­ness pro­grammes and en­deav­ours by reg­u­la­tors and as­set man­age­ment com­pa­nies.

In all, in­vestors poured in a net of Rs 2,02,001 crore in MF schemes in the first six months of the on­go­ing fis­cal, as com­pared to Rs 2,34,564 crore in April-Septem­ber 2016-17.

Liq­uid and money mar­ket funds in­vest mainly in money mar­ket in­stru­ments like com­mer­cial pa­pers, trea­sury bills, term de­posits and cer­tifi­cate of de­posits. Th­ese funds have a lower ma­tu­rity pe­riod and do not have any lock-in pe­riod.

Sai­gal said that in­vestors were tak­ing the Sys­tem­atic In­vest­ment Plan (SIP) route to in­vest in mu­tual funds.

At present, the Mu­tual Fund in­dus­try re­ceives about Rs 5,000 crore ev­ery month through SIPs -- an in­vest­ment ve­hi­cle that al­lows in­vestors to in­vest in small amounts pe­ri­od­i­cally, in­stead of lump­sum.

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