Assets under management of mutual funds increased eight per cent in November to Rs 24.03 lakh crore against Rs 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 more than doubled at Rs 1.36 lakh crore against Rs 55,296 crore in October. Outflow from income fund slowed down to Rs 6,518 crore in November against Rs 37,642 crore recorded in the previous month.

The benchmark Sensex was up five 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 Rs 10,000 crore-mark to Rs 7,579 crore and were down 34 per cent against Rs 11,422 crore in October, while inflow into balanced fund more than halved to Rs 215 crore (Rs 519 crore). Inflow into equity linked savings scheme was down 30 per cent at Rs 835 crore against Rs 1,200 crore.

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

Investment through systematic investment plan last month was flattish at October level of Rs 7,985 crore, while folio under SIP increased marginally to 2.52 crore from 2.49 crore. SIP asset under management was up 6 per cent at Rs 2.31 lakh crore (Rs 2.18 lakh crore).

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

The net of SIP opened is higher than that have been closed, thus showing a net increase in SIP folios, he added.

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

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

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