Even as fairness mutual funds witnessed decrease web inflows of Rs 5,214 crore in October as in comparison with Rs 8,677 crore within the earlier month, systematic funding plan (SIP) ebook of MFs continued to publish wholesome progress and hit a brand new excessive of Rs 10,518 crore for the month.
Investors put Rs 10,351 crore in SIPs of fairness schemes in September this 12 months. Hybrid funds garnered huge inflows of Rs 10,437 crore in October as in comparison with Rs 3,587 crore earlier, in response to knowledge from the business physique AMFI.
AMFI mentioned balanced benefit funds noticed the most important inflows of Rs 11,219 crore in October. Assets underneath administration within the equity-oriented schemes and hybrid-oriented schemes rose by nearly one-third throughout April 2021 to October 2021 to RS 13.12 lakh crore and RS 4.76 lakh crore respectively as on October 31, 2021 from RS 9.80 lakh crore and RS 3.57 lakh crore respectively as on April 30, 2021, AMFI mentioned.
N S Venkatesh, Chief Executive, AMFI, mentioned: “It is heartening to see investors sticking to making matured choice by opting for schemes that offer prudent mix of debt and equity through balanced advantage schemes, flexi-cap schemes, and choosing mutual funds as an investment for long term financial planning for their own retirement and children’s welfare. This is quite evident from monthly SIP contribution getting consolidated at record high level at Rs 10,518.53 crore.”
“Net positive flows during October 2021 in all categories of open-ended schemes coupled with continued buoyancy in SIP flows, which are a at historic high, peaked the overall Indian MF Industry AUM to an all-time high of Rs 38.21 lakh crore,” Venkatesh mentioned.
Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC, mentioned, “broadly, the mood to invest in equities continues with positive net sales in pure equity funds of Rs 5,200 crore. However, at the same time, we do see an element of profit booking with higher absolute redemption of Rs 23,500 crore.”
Chaturvedi mentioned, “with higher net flows in the hybrid and balance advantage category signifies the retail investor taking cautious view at current market levels and being prudent by taking balanced view while investing in equities to a limited extent. This strategy is a good way to use proprietary valuation models of various mutual funds and have adequate exposure to equities and not to miss out from any upside.”
According to AMFI, SIP AUM breached the Rs 5.5 lakh crore mark and stood at Rs 553,532 crore. The variety of SIP accounts stood all-time excessive in October 2021 at 4,64,30,598 in comparison with 4,48,97,602 in September 2021. Retail AUM was at an all-time excessive at Rs 18,01,588 crore, it mentioned.
In the fairness and development class, all schemes barring ELSS and worth/ contra schemes, reported constructive flows, whereas within the hybrid class apart from arbitrage and hybrid aggressive or balanced funds, the remainder together with majorly balanced benefit and dynamic asset allocation schemes reported continued huge acceptance.
The Fund of Funds, Index Funds and ETFs too reported constructive flows and collectively reported constructive flows to the tune of Rs 10,758 crore as on October 31, 2021.
