Mutual fund houses witnessed an overall outflow of Rs 61,809 crore in December 2019 as against an inflow of Rs 54,419 crore last November, despite good inflows through systematic investment plans (SIPs), according to data from the Association of Mutual Funds in India (Amfi).
While fund managers attributed the drop in the asset base to outflow of Rs 78,426 crore from debt-oriented schemes, equity funds witnessed a rise in inflows on a month-on-month basis and a decline on a year-on-year basis.
Among debt-oriented schemes, liquid funds, with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon, witnessed withdrawals over Rs 71,158 crore — the highest among the fixed-income segment last month.
Amfi said equity-oriented funds continued to attract investments tracking the surge in domestic stock markets last month. Equity funds saw a net infusion of Rs 4,432 crore in December as compared to net flow of Rs 933 crore seen in November and Rs 6,015 crore in October. Equity funds saw inflow of Rs 6,606 crore in the same month of the last year. Equity mutual funds held total assets under management (AUM) of Rs 7.71 lakh crore as on December 31, 2019.
According to Amfi, collection through SIPs surged to over Rs 8,518 crore in December 2019, from Rs 8,273 crore in the preceding month. The asset base of SIP increased to an all-time high of Rs 3.17 lakh crore from Rs 3.12 lakh crore, reflecting positive sentiment in equities. There are 2.97 crore SIP accounts, it said.
NS Venkatesh, chief executive, Amfi, said, “Retail Investors continue to repose trust in mutual funds as reflected by continued flows through SIPs, despite challenging domestic economic scenario and global trade issues and conflicts. Markets have rallied and indices scaled new peaks, which is reflective of resolution coming through structural policies like IBC and lowering of interest rates, as also, expectation from Budget.’’
“The average AUM at Rs 27.26 lakh crore, at an all-time high, and net equity inflows trebling in the last month to Rs 4,499 crore, continued robust SIP book of Rs 8,518.47 crore and SIP AUMs at an all-time high at Rs 3.17 lakh crore are reflective of positive sentiment in equities,” he added.
The mutual fund industry saw its asset base slip by 2 per cent to Rs 26.54 lakh crore by December-end, primarily on account of outflow from debt-oriented schemes, including liquid funds.
The industry logged an all-time high AUM of Rs 27.04 lakh crore by the end of November, as compared to Rs 26.54 trillion at December-end , representing a decline of 2 per cent, as per Amfi.
Besides, overnight funds — which invest in securities with a maturity of one day — saw outflows of over Rs 8,800 crore. However, banking and PSU funds, which have a high allocation to highest rated bonds, received funds to the tune of Rs 4,770 crore. Gold exchange-traded funds saw an inflow of Rs 27 crore in December 2019, while the same was over Rs 7 crore last November.
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