Inflows into equity schemes of mutual funds plummeted 84.4 per cent in November, despite stock market indices like Sensex hitting a record peak and foreign investors pumping over Rs 25,000 into the stock market during the month.
Open-ended equity schemes witnessed an infusion of Rs 1,312 crore, while there was an outflow of Rs 379 crore from close-ended equity plans, taking total equity inflows to Rs 933 crore in November as against inflows of Rs 6,015 crore in October, the Association of Mutual Funds in India (AMFI) said on Monday.
However, SIP (systematic investment plan) inflows soared to all-time high of Rs 8,272 crore, up Rs 27 crore from last month’s numbers. Total number of SIP accounts climbed further to 2.94 crore, an addition of 5.33 lakh accounts during the month.
The asset under management (AUM) under SIPs in November jumped to Rs 3.12 lakh crore, up from Rs 3.03 lakh crore in October.
NS Venkatesh, CEO, AMFI, said, “Goal-based, long-term SIP investments from retail investors continue to grow steadily, with SIP AUM at an all-time high at Rs 3.12 lakh crore. While equity net inflows have come down sharply in November, partly due to investors booking profits, the overall mutual fund industry AUM reached an all-time high of Rs 27 lakh crore.”
The mutual fund industry saw its assets base cross the Rs 27 lakh crore-mark in November-end, on the back of inflows in debt-oriented schemes including banking and PSU funds, which have a high allocation to highest rated bonds.
The AUM of the sector rose from Rs 26.33 lakh crore in October-end to Rs 27.04 lakh crore by November-end, representing a growth of 3 per cent, according to AMFI.
Fund houses witnessed an overall inflow of Rs 54,419 crore last month, as against Rs 1.33 lakh crore in October, a decline of over 59 per cent. Fund managers attributed growth in the asset base to strong inflows of around Rs 51,000 crore in debt-oriented schemes.
Among debt-oriented schemes, overnight funds — which invest in securities with a maturity of one day — received flows worth about Rs 20,650 crore, which was the highest among the fixed-income segment last month.
Apart from this, banking and PSU funds received funds to the tune of Rs 7,230 crore, while Rs 6,938 crore was infused in liquid funds, with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon.
Credit risk funds saw outflows in November, with continuous outflows from this category leading to fall in its AUM. So far in FY20, AUM of credit risk funds have fallen to Rs 63,754 crore from Rs 79,643 in April, a drop of nearly 20 per cent.
Liquid funds — which are used by companies to park surplus cash — saw a massive fall in terms of inflows in November to Rs 6,938 crore, compared to inflows of Rs 93,203 crore in the preceding month.
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