Mutual fund inflows grew more than four times to touch Rs. 1.42 lakh crore compared to Rs. 35,529 crore during October, shows AMFI data. A key contributor to this increase is the sharp rise in liquid fund flows which grew from Rs. 55,296 in October to Rs.1.36 lakh crore in November shows AMFI data. In a press conference today, AMFI CEO, NS Venkatesh attributed this rise in liquid AUM to fear regarding NBFC crisis slowly abating.
Another factor which positively influenced inflows was the tapering of outflows in income funds. According to Venkatesh, expectations of a pause in interest rates may have helped sentiment in case of income funds which saw huge outflows during last year.
On a slightly negative note, flows to equity funds tapered during November compared to the month before shows AMFI data. According to Venkatesh the increased volatility in equity markets coupled with near term elections have led some investors to stay on the sidelines till political events settle and corporate earnings pick-up in line with expectations.
In addition, the November being a festival season with a many holidays the seasonal demand for investments was lower.
Monthly AUM November 2018
|
Funds |
Net inflow/outflow (Rs. cr.) |
Monthend AUM Oct-2018 (Rs. cr.) |
|
Equity funds |
8,629 |
948,926 |
|
Debt |
-6,457 |
697,472 |
|
Arbitrage Funds |
2,376 |
59,538 |
|
Liquid/ Money Market |
1,36,135 |
593,546 |
|
Gold ETF |
10 |
4,385 |
|
Other ETFs |
1,634 |
94,863 |
|
Fund of Funds Investing Overseas |
32 |
1,699 |
Source: AMFI
On the plus side, SIP flows continue to hold their position at Rs. Rs. 7,985 crore indicating resilience on part of retail investors to continue to invest in the India growth story.
Though there was no increase in SIP flows, 3 lakh new SIP accounts were added during the month indicating that new investors are entering the SIP fold. The total number of SIP accounts stand at 2.52 crore at end of November.
