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The assets under management of mutual fund industry were up by less than one per cent in October at Rs 22.23 lakh crore against Rs 22.04 lakh crore in September due to continuous outflow from income fund and a weak equity market.
In the last one year, the overall AUM was up 21 per cent, compared with Rs 21.41 lakh crore logged in October, 2017.
Redemption from income fund was up 16 per cent at Rs 37,642 crore against Rs 32,504 crore logged in September. However, liquid and money market funds turned positive with an inflow of Rs 55,296 crore against an outflow of Rs 2.11 lakh crore in September, according to data released by the Association of Mutual Funds in India on Friday.
Inflows into equity schemes, including that of arbitrage funds and equity linked saving schemes (ELSS), were up 31 per cent at Rs 14,783 crore in October against Rs 11,251 crore logged in the previous month despite volatility and concerns in the equity market. The BSE Sensex was down five per cent in October and six per cent in September.
Assets under management in equity schemes, including arbitrage funds and ELSS, were down marginally at Rs 7.99 lakh crore against Rs 8.02 lakh crore despite an inflow through systematic investment plan increasing three per cent to Rs 7,985 crore against Rs 7,727 crore in September.
Assets under debt-oriented schemes, including income, liquid, infrastructure debt and gilt funds, were up three per cent at Rs 11.63 lakh crore against Rs 11.28 lakh crore.
NS Venkatesh, Chief Executive Officer, Association of Mutual Funds in India, said inflows into equity schemes witnessed a positive trend for the 53 consecutive month despite volatility in equity markets.
In fact, he said the average inflow of Rs 7,500 crore a month, which works out to Rs 97,000 crore a year through SIP, has ensured that it makes up for the pullout by foreign portfolio investors.
The perception on debt market has turned to neutral from negative and it is just a matter of time that the entire outflow of Rs 2.11 lakh crore seen in September comes back, he added.
The total number of folios increased 25 per cent year-on-year to 7.90 crore in October against 6.32 crore in the same month last year. Number of folios increased by 11.45 lakh folios on a month-on-month in October with retail folios accounting for 10.59 lakh folios.
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