Equity MF AUM crosses Rs. 4 lakh crore mark

Thanks to sustained inflows in existing funds and growing SIP book, equity mutual fund AUM (including ELSS) reached Rs.4.03 lakh crore in November.

In November, the gross equity sales stood at Rs. 11,754 crore while the gross redemptions were at Rs. 5,681 crore, which resulted in net inflows of Rs. 6,073 crore in equity funds. ELSS received net inflows of Rs. 306 crore.

As a result, the YTD inflows in equity funds reached close to Rs.66,500 crore. A majority of these inflows came in existing funds. Existing funds mopped up Rs.12,140 crore while two new fund offers (all closed end funds) collected Rs. 180 crore.

ETFs

Like equity funds, ETFs which track equity indices, too attracted inflows of Rs. 1,183 crore in November.

Gold ETFs continued to see outflows in November due to the lackluster performance of gold. The category saw net outflows of Rs. 40 crore in November. Also, competition from Sovereign Gold Bond Scheme (SGBS) is drying inflows in Gold ETFs. SGBS received 63,000 applications, mopping up close to Rs.250 crore for 917 kg of gold in the first issue.

Debt

While income funds saw net inflows of Rs.2,475 crore, liquid and gilt funds saw net outflows of Rs.42,059 and Rs.80 crore respectively in November.

Gilt funds continued to attract investors on the hopes of a rate cut. However, after the RBI cut repo rate by 50 bps in September, market participants are not expecting further rate cuts this calendar year.

Outflows from debt funds dragged down industry’s AUM by Rs.40,000 crore.

Overseas fund of funds

The category is seeing continuous outflows since the last eight months. Overseas fund of funds saw net outflows of Rs.45 crore in November while the YTD net outflows stood at Rs. 322 crore.

Overall, the industry’s assets under management slipped by 2% in November to Rs. 12.95 lakh crore from Rs. 13.24 crore in October due to outflows from liquid funds.

Net inflows/outflows in November 2015