Fresh flows into liquid schemes, recovery in stock markets boost AUM in November
Despite stock market volatility, assets under management (AUM) of mutual funds (MFs) in November increased 8% to ₹24.03 lakh crore from ₹22.23 lakh crore reported in October.
This was primarily on account of fresh fund inflow into liquid MF schemes and recovery in the equity markets, according to a top official.
“We appreciate the maturity shown by retail investors in staying invested in the markets despite volatility over the last few months,” said N.S. Venkatesh, chief executive, Association of Mutual Funds of India (AMFI).
“Monthly SIP (systematic investment plan) contribution continues to remain strong at ₹7,985 crore a month, which is over $1 billion. Overall, both inflows and AUM have shown an upward trend. The industry added over 1.5 lakh unique investors last month,” he said.
According to AMFI data, November witnessed an inflow of ₹1.36 lakh crore into liquid funds, which was more than double that of ₹55,296 crore reported in October.
Outflow from income funds sharply reduced to ₹6,518 crore in November from ₹37,642 crore in October, 2018.
Though the Sensex rose 5% in November as compared with October, net inflow into MF equity schemes fell to ₹7,579 crore from ₹11,422 crore in October, down 34%. Inflow into equity-linked saving scheme stood at ₹835 crore against ₹1,200 crore in October, down 30%.
Retail investment in MF schemes stood at ₹11,005 crore compared with ₹15,302 crore in the previous month, down 28%.
Investment through SIPs last month was flat at October level of ₹7,985 crore even while folio under SIPs increased marginally to ₹2.52 lakh crore from 2.49 lakh crore. SIP AUM rose 6% to ₹2.31 lakh crore (₹2.18 lakh crore).
AUM of other ETFs increased to ₹94,863 crore in November against ₹89,515 crore reported in October. The ₹17,000 crore, which was raised by government through CPSE ETF-3, would reflect in ‘other ETF’ in December.
To attract more investors
On the outlook, Mr. Venkatesh said, “As India becomes the fastest-growing economy and with inflation rates slowing down, equities are expected to perform better in the near future. We are hopeful that next year, many more investors will choose mutual funds as their preferred option to grow their wealth.
“We see the industry growing by 20% and AUM to reach ₹30 lakh crore by end of 2019,” he added.