Due to the rally in equity markets, the MF industry’s AUM has reached an all-time high of Rs.30 lakh crore as on November, 2020.
However, equity funds have witnessed net outflows for the fifth consecutive months. Experts attributed this to profit booking by investors given benchmark both Sensex and Nifty are scaling new highs.
N S Venkatesh, CEO, AMFI said, "Accommodative credit policy stance, continuous global liquidity flows coupled with improved economic sentiment driven by healthier corporate earnings and positive GDP growth forecast has led to Indian mutual fund industry AUMs crossing historic highs and touching highest ever Rs.30 lakh crore landmark. Investors are aligning their allocation in debt schemes more towards duration schemes and corporate bond funds to maximize their debt returns and on the other hand booking their profits in equity funds owing to surge in equity valuations.”
G Pradeepkumar, CEO, Union MF said, “The strong performance of the equity markets in November seem to have encouraged more investors to book profits and move to short term investments. We still believe that there is significant amount of money that can come back to the market in the event of any correction. The medium to long term potential of the equity markets remain strong. SIP numbers have remained robust which is a good indication of continued retail interest. It must be kept in mind that since the last three days of November were non-business days, a significant amount of SIP flows might not be reflected in the official numbers that have been released.”
“November 2020 has been a good month for equity markets with Nifty 50 at all-time high and a very strong recovery in the mid and small cap indices; after three years of negative returns, mid and small caps turned positive. We have also seen record FII buying to the extent of Rs. 60,000 crore in month of November backed by strong liquidity, lower interest rates and increased interest in emerging markets,” said Akhil Chaturvedi, Associate Director & Head of Sales, Motilal Oswal MF.
Let’s look at key highlights of November 2020:
Equity schemes
-
Overall, equity schemes have witnessed net outflows of Rs. 12,917 crore in November compared to Rs. 2,724 crore outflow in October
-
All equity fund categories saw net outflows due to profit booking
-
Large cap funds witnessed the highest net outflows of Rs. 3,289 crore followed by multi cap funds with net outflows of Rs. 2,842 crore
-
Mid cap funds and small cap funds have seen net outflows of more than Rs. 1,000 crore each
-
No. of folios in equity funds has fallen by 3.95 lakh to 6.36 crore in November
Debt schemes
-
Overall, debt schemes have seen net inflow of Rs. 44,983 crore led by low duration funds, short duration funds and dynamic bond fund
-
Barring credit risk funds, overnight funds and liquid funds, all other debt oriented funds witnessed robust inflows
-
Short duration categories such as ultra-short duration, low duration and money market funds have received good traction
Hybrid schemes
-
Barring conservative hybrid funds, all categories of hybrid funds have seen net outflows of Rs. 5,248 crore
-
While balanced hybrid fund and balanced advantage saw a net outflow of Rs. 3,731 crore and Rs.733 crore respectively, conservative hybrid funds saw net inflow of Rs.139 crore
SIP trend
-
Monthly SIP inflows in November have fallen by nearly 7% to Rs. 7,302 crore from Rs. 7,799 crore in October
-
Meanwhile, SIP folios have witnessed a marginal jump to 3.41 crore from 3.37 crore
-
Overall, SIP AUM has fallen by Rs. 36,268 crore to Rs 3.78 lakh crore
Broad trend
-
Overall, the MF industry has witnessed net inflow of over Rs. 27,000 crore
-
The total AAUM for November has risen to nearly Rs.30 lakh crore from Rs.28 lakh crore in October
