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Equity MF investments plunge 78%, SIP inflows hit all-time high in Nov

Net inflows into equity mutual fund schemes tanked to Rs 1,311 crore in November.

Updated: Dec 09, 2019, 04.26 PM IST
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Sectoral funds and contra funds saw outflows of Rs 636.55 crore and Rs 955 crore, respectively.
NEW DELHI: Net inflows into equity mutual funds plunged sharply to multi-year lows in November, as investors preferred to book profits with Dalal Street at record high.

As per latest data by Amfi, net inflows into equity schemes tanked to Rs 1,311 crore. Inflows into equity mutual fund schemes in October was 6,026.38 crore.

NS Venkatesh, Chief Executive of Amfi attributed the sudden dip to profit booking. “Since the market is touching new highs, people are booking profits and taking money out. Now they are waiting in the wings for fresh lows to happen so that they can re-enter,” he said.

Sectoral funds and contra funds saw outflows of Rs 636.55 crore and Rs 955 crore, respectively, data showed. Large and midcap funds saw net outflows of Rs 252 crore during the month. Net inflows into multicap funds dropped to Rs 181.14 crore from Rs 1,311 crore last month.

Meanwhile, SIP inflows soared to all-time highs in November, Association of Mutual Funds in India (Amfi) said on Monday. It was at Rs 8,272 crore, up 27 crore from last month’s numbers. The SIP inflows in October were Rs 8,245 crore.

Total number of SIP accounts climbed further to 2.94 crore, an addition of 5.33 lakh accounts during the month. The asset under management (AUM) via SIPs jumped to Rs 3.12 lakh crore, up from Rs 3.03 lakh crore in the last month.

The total AUM (assets under management) of mutual funds in India rose to a new high of Rs 27.014 lakh crore in October from Rs 26.32 lakh crore last month, that means a growth of Rs 54,419 crore. The biggest driver to the growth was a massive inflow to overnight and liquid funds at Rs 20,649 crore and Rs 6,938 crore, respectively.

“The surge in Overnight funds could be mainly due to change in structure between liquid funds and overnight funds. Liquid fund exit loads are being prescribed. So, maybe people are reallocating the money to overnight funds,” said Venkatesh.

Venkatesh said the market should go up from here as reform process has kickstarted and budget is coming. “The budget expectations will start building up from January onwards. I think the market should keep looking up. So, if somebody wants to invest, I think they should make investments at this juncture itself.”

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