Equity mutual fund inflows surge 12% in August, SIP flying high; key things to know

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Published: September 9, 2019 5:02:52 PM

While the stock market has given tepid returns in August, equity mutual funds registered robust inflows. Equity mutual funds saw a 12.8% on-month rise is inflows to Rs 9,152.43 crore.

Mutual Fund, म्यूचुअल फंड, international fund, gold fund, ETF, invest in mutual fund, इंटरनेशनल फंड, गोल्ड फंड, mutual fund returnThe total industry AUM (asst under management) rose by 3.8% on-month to Rs 25.47 lakh crore as on August 31.

While the stock market has given tepid returns in August, equity mutual funds registered robust inflows. Equity mutual funds saw a 12.8% on-month rise is inflows to Rs 9,152.43 crore, as compared to Rs 8,112.52 crore in July. Equity mutual funds registered their second highest level of net inflows in the last 10 months. Notably, the SIP inflows have also remained resilient to above Rs 8,200 crore. Retail investors pumped in Rs 8,230.76 crore via SIP in August, marginally lower than Rs 8,324 crore collected last month, data from AMFI revealed. The retail investor putting in money in mutual funds has become a lot smarter and resilient. A 10-year SIP is sitting on 10% CAGR returns. A 7-year SIP has given about 7-7.5% CAGR return. A lot of SIP investors that we talk to are confident of future returns. This explains the stability of monthly SIP inflows,” Parthiv Shah, Director, at Tracom Stock Brokers said in an interview to Bloomberg Quint.

Also read: Warren Buffett’s mantra on winning it big; ‘The Buffett Formula’ can make anyone successful

The total industry AUM (asst under management) rose by 3.8% on-month to Rs 25.47 lakh crore as on August 31. Notably, the liquid funds posted a stellar rise as net inflows rose to Rs 79,428 crore in August as against Rs 45,441 crore in July. Taking stock of the figures, Radhika Gupta of Edelweiss Mutual Fund said that these are good set of numbers.

According to the expert, the SIP book has been around Rs 8,200 crore, and this has been a very stable number. “It shows that the retail investor has been reasonably patient. What’s encouraging is that the rise has been across segments–  largecap, multicap, midcap as well as smallcap. Liquid fund inflows are always cylical, don’t pay too much attention to that number. A lot of money from the space went out in June is now coming back,”  Radhika Gupta, CEO, Edelweiss Mutual Fund said in an interview to Bloomerg Quint.

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