Money & Banking

MFs asset jumps 7 per cent on robust debt inflows

Suresh P Iyengar Mumbai | Updated on November 08, 2019 Published on November 08, 2019

The asset under management of mutual fund industry increased by seven per cent in October 2019 to Rs 26.32 lakh crore.   -

The asset under management of mutual fund industry increased by seven per cent in October to Rs 26.32 lakh crore against Rs 24.51 lakh crore logged in September on the back of strong inflow into debt funds, particularly the liquid funds, which attracted fresh învestment of Rs 93,203 crore against outflow of Rs 1.41 lakh crore, according to the Association of Mutual Funds in India.

Net inflow into equity fund dipped by nine per cent to Rs 6,026 crore last month from Rs 6,609 crore logged in September even while overall AUM increased four per cent to Rs 7.55 lakh crore (Rs 7.24 lakh crore) due to bull run in equity markets.

Systemic Investment Plan contribution also dropped a tad to Rs 8,246 crore (Rs 8,262 crore) as the economic uncertainty persisted despite the bull run in market.

SIP AUM crossed Rs 3 lakh crore-mark for the first time toRs 3.03 lakh crore (Rs 2.88 lakh crore) and the SIP account increased to 2.06 crore, up by 4.7 lakh.

NS Venkatesh, CEO, AMFI said the inflows into equity through the monthly SIP route will act as a counter-balance in case of pull out by foreign investors on the back of Moodys' downgrade of India rating.

The weakening government financials will not impact the positive outlook of the country.

The measures taken by the government will start yielding results in next few months and the market is factoring it in, he said.

G Pradeepkumar, CEO, Union Asset Management Co said SIP flows have remained robust even in the face of continued volatility in the market, which augurs well for the mutual fund industry and broader market. Arbitrage funds seem to attract investors attention continuously on account of their relatively stable returns and tax efficiency, he added.

Exchange Traded Funds attracted an investment of Rs 5,906 crore (Rs 1,033 crore).

Top equity schemes such as multi-cap funds attracted lesser inflows in September at Rs 1,312 crore (Rs 1,678 crore) followed by large cap and mid- cap funds of Rs 1,182 crore (Rs 1,560 crore) and Rs 1,091 crore (Rs 1,277 crore), respectively.

Retail AUM of mutual funds jumped to Rs 11.62 lakh crore against Rs 11.27 lakh crore logged in last year.

Among debt funds, credit risk fund saw an outflow of Rs 1,382 crore, while money market and ultra short term funds saw an inflow of Rs 6,612 crore (outflow of Rs 6,278 crore) and Rs 5,748 crore (outflow of Rs 6783 crore).

Published on November 08, 2019
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