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SIPs at new high, but equity schemes get lower inflows in Oct

Investors put Rs 10,351 crore in SIPs of equity schemes in September this year. Hybrid funds garnered massive inflows of Rs 10,437 crore in October as compared to Rs 3,587 crore earlier, according to data from the industry body AMFI.

By: ENS Economic Bureau | Mumbai |
November 11, 2021 1:14:52 am
The Fund of Funds, Index Funds and ETFs too reported positive flows and collectively reported positive flows to the tune of Rs 10,758 crore as on October 31, 2021. (Representational)

Even as equity mutual funds witnessed lower net inflows of Rs 5,214 crore in October as compared to Rs 8,677 crore in the previous month, systematic investment plan (SIP) book of MFs continued to post healthy progress and hit a new high of Rs 10,518 crore for the month.

Investors put Rs 10,351 crore in SIPs of equity schemes in September this year. Hybrid funds garnered massive inflows of Rs 10,437 crore in October as compared to Rs 3,587 crore earlier, according to data from the industry body AMFI.

AMFI said balanced advantage funds saw the largest inflows of Rs 11,219 crore in October. Assets under management in the equity-oriented schemes and hybrid-oriented schemes rose by almost one-third during April 2021 to October 2021 to RS 13.12 lakh crore and RS 4.76 lakh crore respectively as on October 31, 2021 from RS 9.80 lakh crore and RS 3.57 lakh crore respectively as on April 30, 2021, AMFI said.

N S Venkatesh, Chief Executive, AMFI, said: “It is heartening to see investors sticking to making matured choice by opting for schemes that offer prudent mix of debt and equity through balanced advantage schemes, flexi-cap schemes, and choosing mutual funds as an investment for long term financial planning for their own retirement and children’s welfare. This is quite evident from monthly SIP contribution getting consolidated at record high level at Rs 10,518.53 crore.”

“Net positive flows during October 2021 in all categories of open-ended schemes coupled with continued buoyancy in SIP flows, which are a at historic high, peaked the overall Indian MF Industry AUM to an all-time high of Rs 38.21 lakh crore,” Venkatesh said.

Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC, said, “broadly, the mood to invest in equities continues with positive net sales in pure equity funds of Rs 5,200 crore. However, at the same time, we do see an element of profit booking with higher absolute redemption of Rs 23,500 crore.”

Chaturvedi said, “with higher net flows in the hybrid and balance advantage category signifies the retail investor taking cautious view at current market levels and being prudent by taking balanced view while investing in equities to a limited extent. This strategy is a good way to use proprietary valuation models of various mutual funds and have adequate exposure to equities and not to miss out from any upside.”

According to AMFI, SIP AUM breached the Rs 5.5 lakh crore mark and stood at Rs 553,532 crore. The number of SIP accounts stood all-time high in October 2021 at 4,64,30,598 compared to 4,48,97,602 in September 2021. Retail AUM was at an all-time high at Rs 18,01,588 crore, it said.

In the equity and growth category, all schemes barring ELSS and value/ contra schemes, reported positive flows, while in the hybrid category except for arbitrage and hybrid aggressive or balanced funds, the rest including majorly balanced advantage and dynamic asset allocation schemes reported continued wide acceptance.

The Fund of Funds, Index Funds and ETFs too reported positive flows and collectively reported positive flows to the tune of Rs 10,758 crore as on October 31, 2021.

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