Even as equity markets were down by around 2% in August, equity mutual funds saw record inflows of Rs 20,362 crore, while total assets of the mutual fund industry touched a record high level and crossed the Rs 20 lakh-crore mark last month.
Even as equity markets were down by around 2% in August, equity mutual funds saw record inflows of Rs 20,362 crore, while total assets of the mutual fund industry touched a record high level and crossed the Rs 20 lakh-crore mark last month. The latest data from the Association of Mutual Funds in India (Amfi) shows that assets under management (AUM) of the industry as on August 2017 stood at Rs 20.59 lakh crore, with income funds having total AUM of Rs 8.58 lakh crore and assets of equity funds standing at over Rs 7 lakh crore (which includes equity and ELSS) as on August, 2017.
In the current financial year, equity funds have seen net inflows of over Rs 61,421 crore, suggests the data from Amfi. Industry participants say that participation from retail investors have been very encouraging for the past few months across the equity segments. “Systematic investment plans (SIPs) are growing at very rapid pace in the mutual fund industry. Even after correction in the market last month, we have seen investors coming in, which is very positive sign,” said Jimmy Patel, MD and CEO at Quantum Asset Management Company (AMC).
Senior officials in the industry say that inflow volume of SIPs now stands at Rs 5,000-7,000 crore on a monthly basis.
The data from Amfi also showed new inflows into mutual fund in the month of August stood at Rs 61,701 crore with most coming from liquid schemes at Rs 21,352 crore.
ELSS also continued to see net inflows of `847 crore in the month of August, 2017. Apart from liquid schemes, even balanced funds also saw net inflows of Rs 8,783 crore last month along with other exchange traded funds (ETFs) schemes which also saw flows of Rs 1,513 crore.
On the other hand, ‘fund of funds’ investing overseas and gold exchange traded funds (ETFs) fund saw outflows of Rs 61 crore and Rs 58 crore, respectively. Industry participants also say that there are inflows not only in equity funds, but even in balanced funds from across the country.