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SIP inflows hit all-time high in Nov

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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) via SIPs jumped to Rs 3.12 lakh crore, up from Rs 3.03 lakh crore in the last month.

The total AUM (assets under management) of mutual funds in India rose to a new high of Rs 27.014 lakh crore in October from Rs 26.32 lakh crore last month that means a growth of Rs 54,419 crore.

The biggest driver to the growth was a massive inflow to overnight and liquid funds at Rs 20,649 crore and Rs 6,938 crore, respectively.

Venkatesh said the market should go up from here as reform process has kickstarted and budget is coming. “The budget expectations will start building up from January onwards. I think the market should keep looking up. So, if somebody wants to invesments at this juncture itself.”

Mutual funds' asset base hits all-time high of ₹27 lakh crore in November

  • Fund managers attributed growth in the asset base to strong inflows of around ₹51,000 cr in debt-oriented scheme
  • Mutual fund houses witnessed an overall inflow of ₹54,419 cr last month as compared to ₹1.33 lakh cr in October
  • Mutual fund industry saw its assets base surpassing ₹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 44-player industry logged an assets under management (AUM) of ₹26.33 lakh crore in October-end, as compared to ₹27.04 lakh crore by November end, representing a growth of 3 per cent, according to data from the Association of Mutual Funds in India (Amfi)
  • Mutual fund houses witnessed an overall inflow of ₹54,419 crore last month as compared to ₹1.33 lakh crore in October.
  • Fund managers attributed growth in the asset base to strong inflows of around ₹51,000 crore in debt-oriented schemes.
  • Among debt-oriented schemes, overnight funds -- invest in securities with a maturity of one day-- received flows worth about ₹20,650 crore, the highest among the fixed-income segment last month
  • Apart from this, banking & PSU funds received funds to the tune of ₹7,230 crore, while ₹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.
  • The open-ended equity schemes witnessed an infusion of ₹1,312 crore, while there was an outflow of ₹379 crore in close-ended equity plans, taking total equity inflows to ₹933 crore last month. In October, net inflow in such schemes stood at ₹6,015 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 ₹27 lakh crore," AMFI CEO N.S. Venkatesh said
  • Goal-based, long term systematic investment plan (SIP) investments from retail investors continue to grow steadily, with SIP AUM at an all-time high at ₹3.12 lakh crore," he added.
  • Besides, gold exchange-traded funds saw an inflow of over ₹7 crore after witnessing an outflow of ₹31.45 crore in October.
  • Prior to that, the safe-haven asset saw an infusion of ₹44 crore in September and ₹145 crore in August.

Mutual fund industry folio influx hits 3-month high in Oct; over 6 lakh accounts added

Amid an uptick in the equity market, the mutual fund industry has added more than 6 lakh investors' account in October, making it the highest addition in the last three months.

Amid an uptick in the equity market, the mutual fund industry has added more than 6 lakh investors' account in October, making it the highest addition in the last three months. In comparison, the industry had added 3.45 lakh new folios in September, 4.8 lakh in August and more than 10 lakh in July.

Folios are numbers designated to individual investor accounts. An investor can have multiple folios.

According to data from Association of Mutual Funds in India, the number of folios with 44 fund houses rose to 8, 62, 56,880 at the end of October, from 8, 56, 26,244 in the end of September, registering a gain of 6.3 lakh folios.

This is in line with the BSE's benchmark Sensex gaining nearly 4 per cent last month.

Industry experts said the addition of folios indicates investors' understanding about market risks associated in the mutual fund schemes.

Number of folios s under the equity and equity-linked saving schemes rose by 3 lakh to 6.21 crore in October-end as compared to 6.18 crore at the end of preceding month.

The debt-oriented scheme folios count went up by 1.05 lakh to 68.72 lakh.

Within the debt category, liquid funds continued to top the chart in terms of number of folios at 17.12 lakh, followed by low duration fund at 9.36 lakh.

Mutual fund houses witnessed an overall inflow of Rs 1.33 lakh crore last month after witnessing a redemption of Rs 1.52 trillion in September. The huge inflow could be attributed to debt-oriented schemes, which witnessed an infusion of Rs 1.2 lakh crore.

Among debt-oriented schemes, liquid funds with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon saw an infusion of Rs 93,203 crore last month as compared to an outflow of Rs 1.4 trillion in September.

Besides, equity mutual funds witnessed a net inflow of around Rs 6,015 crore last month.

The inflow has pushed the asset base of the MF industry, comprising 44 players, by 7.4 per cent to over Rs. 26 lakh crore at October-end from Rs 24.5 lakh crore at end-September.

Mutual fund investment in equities halves to ₹55,700-cr in Jan-Oct 2019

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Most of the investment in equities during the year came between July and September

Mutual fund investment in stock markets halved to ₹55,700 crore in the first 10 months of the year because of lower participation from retail investors.

Fund managers had bought shares worth about ₹1.12 lakh crore during January-October 2018, according to the data provided by the Securities and Exchange Board of India (SEBI).

“Inflows from retail investors into mutual funds have slowed compared with a year ago. As a result, mutual funds deployment into stock markets has lowered,” said Vidya Bala, co-founder of Primeinvestor.in “Despite markets moving to new highs, since the rally is restricted to select stocks, retail investors have not seen any positive impact on their wealth. Unless retail appetite increases this trend may continue,” she added.

Omkeshwar Singh, head of mutual fund distribution business at Samco said although the overall flow per month in equities has been positive, if we remove Systematic Investment Plan (SIP) inflows than such inflows turned into negative, therefore the investment has been lower. “The investments through lump-sum net of redemptions have been negative,” he added.

SIP is an investment vehicle that allows investors to invest small amounts periodically instead of a lump-sum payment. The frequency of investment is usually weekly, monthly or quarterly. It is similar to a recurring deposit where investors deposit a small or fixed amount every month.

Of ₹55,700 crore infused in this year, most of the investment in equities during the year came between July and September. Fund managers infused a net sum of ₹43,500 crore during the period. However, foreign investors pulled out ₹22,400 crore in these three months.

The sell-off by foreign portfolio investors (FPIs) in the Indian equity markets provided an opportunity to mutual fund managers, experts believe. On the other hand, fund managers withdrew a collective sum of Rs 12,000 crore from equities in March and April.

Mutual fund AUM rises 7.4% to Rs 26.33 lakh crore in October

The 44-player industry logged an assets under management (AUM) of Rs 24.5 lakh crore in September-end, according to data from the Association of Mutual Funds in India (Amfi).
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Mutual fund houses witnessed an overall inflow of Rs 1.33 lakh crore last month after witnessing a redemption of Rs 1.52 lakh crore in September.

Mutual funds’ asset base increased to Rs 26.33 lakh crore in October-end, a rise of 7.4 per cent as compared with the preceding month, on the back of robust inflows in equity and liquid schemes. The 44-player industry logged an assets under management (AUM) of Rs 24.5 lakh crore in September-end, according to data from the Association of Mutual Funds in India (Amfi). Mutual fund houses witnessed an overall inflow of Rs 1.33 lakh crore last month after witnessing a redemption of Rs 1.52 lakh crore in September. Of these, liquid funds alone witnessed an impressive over Rs 93,200 crore last month. Fund managers attributed growth in the asset base to higher retail participation and robust inflows in equity schemes and liquid funds. The open-ended equity schemes witnessed an infusion of Rs 6,026 crore, while there was a small outflow of Rs 11 crore in close-ended equity plans, taking total equity inflows to Rs 6,015 crore last month. In September, net inflow in such schemes stood at Rs 6,489 crore.

Himanshu Srivastava, senior analyst manager research, Morningstar Investment Adviser India said net inflows continue to pour into the equity-oriented mutual fund schemes tracking the surge in the domestic markets. In the month of October, the category received slightly lower inflow compared to September. The inflow indicate building up of a positive investment trend. “Series of steps taken by the government in the recent times to boost domestic economy had improved sentiments and helped the markets to surge. This has helped investors slowly gain confidence and get back to investing. Additionally, the steady flow through SIP (Systematic Investors Plan) is also keeping the momentum going,” he added. Among debt-oriented schemes, liquid funds with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon saw an infusion of Rs 93,203 crore last month as compared to an outflow of Rs 1.4 lakh crore in September. Overall, debt funds saw an inflow of Rs 1.2 lakh crore. Besides, gold exchange-traded funds saw an outflow of Rs 31.45 crore after witnessing inflow in the preceding two months. The safe-heaven asset saw an infusion of Rs 44 crore in September and Rs 145 crore in August. Inflows in mutual funds (MFs) through SIPs in October stood at Rs 8,246 crore, a slight fall as compared with Rs 8,263 crore a month ago. “SIP AUM crossing the Rs 3 trillion landmark for the first time ever and the continual rise in SIP accounts are a positive reflection of disciplined approach adopted by the retail investor fraternity,” Amfi Chief Executive Officer N S Venkatesh said.

G Pradeepkumar, CEO, Union Asset Management Company said, SIP flows have remained robust even in the face of continued volatility in the market which augurs well for the mutual fund industry as well for the broader markets. “It is also encouraging that there has been about 65 per cent increase in the number of new SIPs added. Arbitrage funds as a category seem to be continuing to attract investor attention probably on account of their relatively stable returns and tax efficiency,” he added. Going ahead equity markets are expected to perform better in the coming quarter positive impact as government initiatives trickles down in the economy, which will drive further inflows in mutual funds.


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