Buoyant equities boost MF assets to ₹24 lakh crore in Nov
But overall retail investment in mutual funds tumbles 28% at ₹11,005 crore
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