Aided by strong inflow into liquid schemes, assets under management (AUM) of mutual funds rose to a little over Rs 24 lakh crore by November-end, an increase of 8 per cent from the preceding month and 5 per cent on a year-on-year basis.
While liquid funds attracted Rs 1.36 lakh crore, Rs 8,400 crore was invested in equity as well as equity-linked saving schemes and Rs 215 crore inflow was seen in balanced funds. Interestingly, gold exchange-traded funds (ETFs) saw a net inflow of Rs 10 crore after witnessing withdrawals in the past several months.
Inflows into equity mutual funds, including equity-linked savings schemes, fell the most in seven months due to greater market volatility, global trade war tensions and uncertainty over the upcoming state elections. Equity inflows fell by nearly 33 per cent over the previous month to Rs 8,414 crore in November, according to data released by the Association of Mutual Funds in India. However, income funds saw withdrawals of Rs 6,518 crore. Overall, mutual fund schemes witnessed an inflow of Rs 1.42 lakh crore in November, much higher than Rs 35,500 crore investment seen in the preceding month.
NS Venkatesh, chief executive, AMFI, said, “We appreciate the maturity shown by retail investors in staying invested in the markets, in spite of the volatility over the last few months. Monthly SIP contribution continues to remain strong at Rs 7,985 crore a month. Overall, both inflows and AUM have shown an upward trend. The industry added over 1.5 lakh unique investors last month.”
“We are hopeful that next year, many more investors will choose MFs as their preferred option to grow their wealth. We see the industry growing by 20 per cent and AUM to reach Rs 30 lakh crore by the end of 2019,” Venkatesh said.