MF assets shrink by 2 per cent on outflows from liquid, overnight funds

The assets under management (AUM) of mutual funds fell by 2 per cent or ₹26.54-lakh crore, against ₹27.04-lakh crore logged in November on the back of outflows from liquid and overnight funds.

However, the AUM of mutual funds were up 16 per cent in the last one year from ₹23.37-lakh crore logged in January.

In December, equity-oriented funds saw inflow of ₹4,499 crore against ₹1,312 crore, as the markets hit a new high. Debt funds saw an outflow of ₹78,427 crore against inflow of ₹51,428 crore in November.

Liquid funds saw an outflow of ₹71,159 crore against inflow of ₹6,938 crore in November, while outflow from overnight funds was ₹8,869 crore against inflow of ₹20,649 crore. The money market and ultra short-term funds logged an outflow of ₹3,006 crore (inflow of ₹5,136 crore) and ₹2,523 crore (inflow of ₹774 crore). Outflow from credit risk funds slowed down to ₹1,191 crore against ₹1,899 crore.

Among equity schemes, focussed funds saw an inflow of ₹1,837 crore (₹479 crore), while multi- and large-cap funds inflows were up at ₹512 crore (₹181 crore) and ₹1,135 crore (₹1,197 crore).

NS Venkatesh, CEO, AMFI, said the continuous flow through SIP is a reflection of retail investors’ trust in mutual funds, despite challenging domestic economic scenario and global trade issues and conflicts.

Markets have rallied and indices scaled new peaks, which is reflective of a resolution coming through structural policies such as IBC and lowering of interest rates, besides expectations from the Budget, he added.

SIP show continues

Inflows through systematic investment plans stood at ₹8,518 crore (₹8,246 crore). The SIP AUMs registered an all-time high of ₹3.17-lakh crore (₹3.03-lakh crore).

Vishal Kapoor, CEO, IDFC AMC, said it was encouraging to see the average AUM trending higher despite anticipated quarter-end outflows in the overnight and liquid fund categories.

In the fixed income asset class, there was continued preference for high-quality short-end categories such as banking and PSU debt funds and short-duration funds, he said.

G Pradeepkumar, CEO Union Asset Management Company, said the sustained rally in large-cap stocks has probably helped build confidence among investors and is reflection of the maturity of mutual fund investors. It also reflects the quality of sales process, as SIP flows remain robust without any largescale redemption.