Equity schemes of fund houses witnessed an outflow of Rs 2,724 crore in the month of October 2020 despite the stock market staging a good performance. However, the debt market received inflows of Rs 1.10 lakh crore taking the total mutual fund assets under management (AUM) as on October 31, 2020 to the highest ever Rs 28.22 lakh crore.
While multi cap funds registered outflows of R 1,902 crore in October, sectoral and thematic funds witnessed net flows of Rs 2,214.67 crore due to two NFOs during October 2020, as per Association of Mutual Funds of India (AMFI).
The mutual fund industry witnessed an overall positive flow of Rs 98,575.96 crore in October 2020. During October 2020, SIP accounts grew to 3.37 crore, leading to a rise in monthly SIP contribution to Rs 7,800 crore as compared to Rs 7,788.37 crore in September. Total SIP AUM rose from Rs 335,571.57 crore as of September to Rs 342,018 crore as of October 2020. The outflow significantly moderated for hybrid scheme category at Rs 1,681.87 crore for October 2020 as compared to Rs 4,219.01 crore in September 2020 and Rs 4,819.45 crore for August 2020.
On the debt side, a surge in the net flows in debt schemes during October 2020 was driven by liquid, money market, corporate bond fund, short duration, ultra short duration, low duration and banking and PSU fund categories.
NS Venkatesh, CEO, AMFI said: “The rise in both SIP contribution and SIP AUMs during October 2020 and continued slowing outflow in equity schemes reinforces the retail investor confidence in the mutual fund as an asset class. This trend is reflective in economy improving further with green shoots amply visible — attractive interest rates, rise in GST collections, digitalisation-driven efficiencies making Indian corporates healthier, conducive GoI policy for attracting FDI and continued surge in FII investment coupled with favourable geo-political scenario would continue to keep Indian equity markets an attractive investment destination over a long term.”
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