Equity funds (including ELSS) received net inflows of Rs. 53,666 crore from April till September, shows the latest AMFI data.
Equity funds continued to attract investor interest in September, as the category saw net inflows of over Rs. 5,000 crore. A large chunk of the inflows came in existing funds which attracted Rs. 11,905 crore in September. As a result, the AUM of equity funds crossed Rs. 3.80 lakh crore in September.
Fund officials say that arbitrage funds have also received some inflows, which are categorized as equity funds. Arbitrage funds gained popularity after the Budget 2014 ended the arbitrage enjoyed by debt funds over traditional fixed deposits by increasing the long term capital gains tax to 20% and changing the definition of long term from 12 months to 36 months.
ETFs
ETFs which track equity indices attracted inflows of Rs. 1,927 crore in September.
Gold ETFs continued to see outflows in September due to the lackluster performance of gold. The category saw net outflows of Rs. 57 crore in September while the YTD outflows stood at Rs. 420 crore. Value Research data shows that Gold ETFs have delivered -7% return over a three year period.
Debt
Income funds saw net outflows of Rs. 26,717 crore in September. Liquid funds saw net outflows of Rs. 60,861 crore due to the quarter end. Outflows from income funds and liquid funds dragged down industry’s AUM by Rs. 87,578 crore.
Gilt
Gilt funds received net inflows of Rs. 1,183 crore in September on the hopes of a rate cut. Gilt funds benefit by rate cuts as a fall in the interest rate leads to a rise in the bond prices as well as the NAV of gilt funds. The RBI reduced the repo rate by 50 basis points on September 29.
Overseas fund of funds
The category is seeing continuous outflows since the last six months. Overseas fund of funds saw net outflows of Rs. 61 crore in September while the YTD net outflows stood at Rs. 240 crore.
NFOs
There was only one equity NFO in September - Indiabulls Value Discovery Fund which managed to collect Rs. 20 crore. UTI Nifty Exchange Traded Fund and UTI Sensex Exchange Traded Fund together mopped up Rs. 31 crore. The industry launched 19 closed end income funds which together mopped up Rs. 2,782 crore.
Overall, the industry’s assets under management slipped by 5% in September to Rs. 11.87 crore from Rs. 12.55 lakh crore in August due to outflows from liquid and income funds.
Net inflow/outflow in September
