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The Indian mutual fund industry continues to experience remarkable growth in September 2023.
While the MF industry AUM has reached close to Rs.48 lakh crore, the gross monthly SIP inflows are now over Rs.16,000 crore in September 2023, shows the AMFI data.
However, the industry has seen net outflows of Rs.66,000 crore due to outflows from short term funds.
Let us look at some key numbers of September 2023:
Equity funds
While the MF industry has witnessed decline in equity inflows compared to August, it is still healthy at Rs.14,000 crore. This is due to reduction in inflows in existing schemes.
The sectoral/thematic funds have received the highest inflows of Rs.3,150 crore. Small cap funds followed sectoral funds with net inflows of Rs.2,700 crore.
Further, the industry has received over Rs.7,700 crore from 16 NFOs. Interestingly, the industry received close to Rs.5,000 crore from three multi asset funds.
Akhil Chaturvedi, Chief Business Officer, Motilal Oswal Mutual Fund said, “The equity markets experienced a notable shift towards a risk-off sentiment, following the all-time high of 20,200 points. Despite this shift, equity mutual funds continued to exhibit resilience, recording a significant net inflow of Rs.14,091 crores.”
Debt funds
Debt funds have witnessed net outflows of Rs.1.02 lakh crore in September 2023. This is largely due to outflows from short term funds like liquid fund (Rs.74,000 crore), money market funds (Rs.9000 crore) and ultra short term funds (Rs.5000 crore).
Barring long duration funds, all other categories have witnessed net outflows.
Hybrid inflows
Hybrid funds have seen net inflows increased from Rs. 17,081 crore in August 2023 to Rs. 18,650 crore in September 2023.
Apart from aggressive hybrid fund, all categories have received net inflows. Arbitrage funds have received the highest net inflows of Rs 10,175 crore.
Akhil said, “Hybrid funds experienced an uptick in net inflows on a month-on-month basis. This trend reflects the prevalent risk-off sentiment in the market with investors seeking to diversify their investments while maintaining a focus on capital protection.”
Passives
Passive funds have received net inflows of Rs. 4700 crore. While index funds have reported net inflows of Rs.1682 crore, ETFs reported net inflows of Rs.3250 crore.
Other key numbers:
- AUM of retail investors account for 52% of the total industry assets. It has reached Rs.25.50 lakh crore
- Industry has added 12 lakh new SIP accounts. Total SIP account is now 7.12 crore
- Total folio count is 15.70 crore with 12.54 crore retail folios
- Unique investors count is over 4 crore now
NS Venkatesh, CEO, AMFI, said, “The Mutual Fund industry crossing the 4 crore unique investors mark is a testament to Indian retail investors’ participation in equity markets through the mutual fund route. This is further demonstrated by the SIP contribution in September 2023 which is the highest till date and the stellar growth of 21% in overall AUM. The mutual fund industry in India maintains a positive overall outlook, supported by its commitment to investor education and safeguarding investor interests. This dedication has strengthened confidence within the investor community.”
G. Pradeepkumar, CEO, Union Mutual Fund said, “The sustained robust inflows into equity funds demonstrate the underlying positive sentiments of investors. The SIP flows continue to be good and could act as a powerful counterforce against any serious FPI outflows. However, given the rich valuations in mid and small cap stocks, we would advise investors to take a staggered approach to investments.”
