Net inflows into equity mutual fund schemes declined 76 per cent to Rs 2,258.35 crore in November compared to Rs 9,390.35 crore in October, according to the data released by Association of Mutual Funds in India (AMFI) on Friday.
In the total equity-oriented schemes, the large cap fund saw an outflow of Rs 1,038.84 crore in November compared to an inflow of Rs 173.62 crore in October.
“There have been outflows from the retail schemes as people are encashing profits, the reason being increased consumption, owing to the festive season,” said N S Venkatesh, chief executive, AMFI.
Retail investors have faith in the growth of the mutual fund industry, therefore they will re-enter the market quickly, he said, adding, “We have seen encouraging growth in many schemes, especially index schemes led by equity schemes.”
The monthly contribution into systematic investment plan (SIP) stood at Rs 13,306.49 crore in November from Rs 13,040.64 crore in the previous month. Number of SIP accounts stood at 6.04 crore as against 5.93 crore in October.
The number of new SIPs registered in November were 21.77 lakh.
The hybrid schemes witnessed a net outflow of Rs 6,477.33 in November compared to an outflow of Rs 2,819.39 in October. This decrease was mainly on account of arbitrage fund schemes in which outflow was to the tune of Rs 4,074.64 crore in November as against an outflow of Rs 2,470.12 crore in the previous month.
Debt mutual fund schemes saw an inflow of Rs 3,668.59 crore compared to an outflow of Rs 2,817.79 in October. Inflow into liquid funds was Rs 34,276.44 crore and Rs 4,942.32 crore in money market funds.
Inflow into index funds was Rs 8,601.73 crore in the reporting month compared to an outflow of Rs 5,075.68 crore in the previous month.
Gold exchange traded funds (ETF) saw an outflow of Rs 194.74 crore in the reporting month as people were trying to encash their values after gold prices went up substantially, Venkatesh said.
Mutual fund industry’s net asset under management (AUM) stood at Rs 40,37,560.81 crore in November compared to Rs 39,50,323.28 crore in October.