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The outflow from equity schemes of mutual funds continued for the third month in a row in September amid sharp volatility in the capital market.
Though the net outflow from equity mutual fund moderated to ₹734 crore last month against an outflow of ₹4,000 crore logged in August, the sharp run-up in valuation remains a concern for investors.
Multi-cap funds, which have been unsettled by regulatory changes, have seen an outflow of ₹1,144 crore, while large-cap and value funds have witnessed an outflow of ₹576 crore and ₹489 crore, respectively.
The outflow from multi-cap funds since June was further accentuated last month by the new SEBI norms that prescribed an individual cap of 25 per cent each in large-, mid and small-cap stocks.
However, the outflow from equity schemes was moderated with inflow of ₹824 crore and ₹621 crore in focussed, and large- and mid-cap funds, respectively.
Akhil Chaturvedi, Head of Sales, Motilal Oswal AMC, said some of the outflows from multi-cap fund have been invested in large- and mid-cap, focussed and small- and mid-cap funds.
The net outflow from hybrid schemes was at ₹4,219 crore, with arbitrage/balanced and aggressive funds registering a net redemption of ₹1,732 crore and ₹2,004 crore, respectively.
Himanshu Srivastava, Associate Director, Morningstar India, said with the redemption in equity funds slowing down and markets falling, it is a good opportunity for investors to enter the market.
SIP flows dip
Investments through systematic investment plan (SIPs) were down marginally at ₹7,788 crore last month against ₹7,791 crore registered in August. The SIP asset under management (AUM) was up a tad at ₹3.33-lakh crore (₹3.30-lakh crore). The industry opened 10.41 lakh new SIP accounts while 7.30 lakh was closed in September.
NS Venkatesh, CEO, Association of Mutual Funds in India (AMFI), said the inflows into equity schemes should turn positive by November-end with investors expecting fresh economic stimulus from the government.
Debt funds also saw a net outflow of ₹51,962 crore with redemption of ₹65,952 crore from liquid funds and ₹4,867 crore from ultra-short-duration funds. The money market funds also logged an outflow of ₹4,857 crore.
Overall, the AUM of mutual funds was down 2 per cent in September at ₹26.85-lakh crore against ₹27.49-lakh crore registered in August. In all, the outflow in September was higher at ₹50,091 crore against ₹14,553 crore in the previous month.
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