The AUM of the mutual fund industry increased by a trillion to stand at Rs.21.4 lakh crore in October, shows the latest AMFI data.
Experts attribute it to the sustained interest of retail investors and mark to market gains.
The AUM of the equity funds including pure equity funds, balanced, ELSS and equity ETFs increased to Rs. 9 lakh crore in October. It increased by nearly 8% from Rs.8.5 lakh crore in September.
Reflecting the positive sentiment in the stock market, equity funds saw a net inflow of Rs.23,574 crore overall in equity funds including pure equity funds, balanced, ELSS and equity ETFs in October.
Pure equity funds received the highest inflows at Rs.15,218 crore and its AUM stood at Rs.6.32 lakh crore. Balanced funds came second with Rs.5,897 crore of inflows in October. The AUM of the balanced funds reached Rs.1.47 lakh crore.
The Nifty 50 increased by 5.6% to 10,335 points in October.
However, industry witnessed a slight decrease overall in equity inflows. Net inflows overall in equity funds has decreased by 19% or Rs.5,471 crore in October from Rs. 29,045 crore in September.
Industry officials attribute it to cyclical fall in inflows due to festival season.
Vidya Bala, Head Mutual Fund Research, FundsIndia says that investor appetite for mutual fund decreases during festive season. “During the festive season, investors are inclined to buy gold and other physical things, and hence their investment towards mutual funds decreases. Also, many investors may have redeemed their investment as they were concerned about the high market levels,” says Vidya.
In the debt funds category, income funds received inflows of Rs. 40,845 crore as against an outflow of Rs. 50,090 crore in September while liquid funds witnessed an outflow of Rs. 13,261crore.
Overall, the MF industry witnessed an inflow of Rs. 51,148 crore in October, 2017.
Monthly AUM and net inflows/outflows for October 2017
|
Category |
October AUM |
Net inflow/outflow |
|
in Rs Crore |
||
|
Equity |
6,32,408 |
15,218 |
|
ELSS |
75,581 |
784 |
|
Balanced |
1,47,460 |
5,897 |
|
ETFs other |
60,107 |
1,675 |
|
ETFs gold |
5,017 |
(34) |
|
Income |
8,55,778 |
40,845 |
|
Gilt |
16,747 |
34 |
|
Liquid |
3,44,422 |
(13,261) |
|
FOFs investing overseas |
1,586 |
(10) |
|
Total |
21,41,346 |
51,148 |
