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Assets under management of mutual funds recovered to touch the Rs 13 lakh crore-mark in October, after losing that peak in the last two months. According to data from industry body Amfi, the total assets managed by mutual funds amounted to Rs 13.25 lakh crore in October, up 11.5 per cent from the September’s closing figure of Rs 11.87 crore.
Not surprisingly, the highest inflows – over Rs 1 lakh crore – came into liquid and money market funds, which see a periodic outflow before quarterly corporate results are made public. (These funds are generally used to meet advance tax payments.) Equity saw net inflow of Rs 6,005 crore. The big game-changer came in income funds, which witnessed the biggest single-month inflows in the last three years at Rs 22,875 crore. This is significant especially because these funds saw large outflows in September because of Amtek Auto defaulting on debt paper held by JP Morgan AMC, ripples of which were felt across the mutual fund industry.
Non-gold exchange-traded funds continues to see sustained inflows (Rs 1,038 crore) as the EPFO, which manages pension savings, decided to invest five per cent of its incremental inflows in equity markets via ETFs, from August this year.
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