Buoy­ant eq­ui­ties boost MF as­sets to ₹24 lakh crore in Nov

But over­all re­tail in­vest­ment in mu­tual funds tum­bles 28% at ₹11,005 crore

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

Asian shares were mostly higher on Fri­day af­ter gains on Wall Street but in­vestors con­tin­ued to watch for news about US-China trade fric­tion The as­sets un­der man­age­ment of mu­tual funds in­creased 8 per cent in Novem­ber to ₹24.03 lakh crore, against ₹22.23 lakh crore logged in Oc­to­ber, largely due to fresh in­flow into liq­uid schemes and re­cov­ery in eq­uity mar­kets.

Ac­cord­ing to the As­so­ci­a­tion of Mu­tual Funds in In­dia data, in­flow into liq­uid funds morethan-dou­bled at ₹1.36 lakh crore, against ₹55,296 crore in Oc­to­ber. Out­flow from in­come funds slowed down to ₹6,518 crore in Novem­ber, against ₹37,642 crore recorded in the pre­vi­ous month.

The benchmark Sen­sex was up 5 per cent or 1,752 points, at 36,194 points in Novem­ber, against 34,442 points reg­is­tered in the pre­vi­ous month.

How­ever, net in­flow into eq­uity schemes fell be­low the ₹10,000 crore-mark to ₹7,579 crore and was down 34 per cent from ₹11,422 crore in Oc­to­ber, while in­flow into bal­anced funds more-than-halved to ₹215 crore (₹519 crore). In­flow into eq­ui­tylinked sav­ings schemes was down 30 per cent at ₹835 crore, against ₹1,200 crore.

How­ever, in­flow into ar­bi­trage funds was up at ₹2,376 crore (₹2,161 crore). Over­all, re­tail in­vest­ment in mu­tual funds was down 28 per cent at ₹11,005 crore (₹15,302 crore).

Flat­tish SIP in­flows

In­vest­ment through sys­tem­atic in­vest­ment plans (SIPs) last month was flat­tish at the Oc­to­ber level of ₹7,985 crore, while fo­lios un­der SIPs in­creased marginally to 2.52 crore from 2.49 crore. SIP as­sets un­der man­age­ment (AUM) climbed 6 per cent at ₹2.31 lakh crore (₹2.18 lakh crore).

Giv­ing rea­sons for the in­crease in SIP fo­lios, com­pared to the flat­tish monthly SIP in­flow, NS Venkatesh, CEO, AMFI, said some of the in­vestors would have stopped their SIPs af­ter achiev­ing their goals while some new SIPs were opened.

The net of SIPs opened is higher than those closed, thus show­ing a net in­crease in SIP fo­lios, he added.

Out­flow from in­come funds has sta­bilised which is the fac­tor for the in­ter­est rate view. Yields have al­ready fallen and in­flow should start re­viv­ing from next month, he said.

The amount of ₹17,000 crore raised by the gov­ern­ment through CPSE ETF-3 would re­flect in ‘other ETF’ in De­cem­ber. The AUM of other ETF in­creased to ₹94,863 crore in Novem­ber, against ₹89,515 crore logged in the pre­vi­ous month.

“We are hope­ful that next year more in­vestors will choose mu­tual funds to grow their wealth. We see the in­dus­try grow­ing by 20 per cent and AUM reach­ing ₹30 lakh crore by the end of 2019,” said Venkatesh.

Gains amid cau­tion AP

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