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SIP inflows dip marginally in Oct, equity MF investments fall for second month: Amfi

The AUM via SIP mode crossed Rs 3 lakh crore, rising by Rs 14,600 crore in October.

ETMarkets.com|
Updated: Nov 08, 2019, 01.51 PM IST
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The large cap funds saw a net inflow of Rs 1,182.25 crore, multicap funds Rs 1,344.86 crore, midcap funds Rs 1,091 crore and smallcap funds of Rs 678 crore.
NEW DELHI: SIP inflow witnessed a minor fall in October, Association of Mutual Funds in India (Amfi) said on Friday.

The SIP flow dipped to Rs 8,245 crore from Rs 8,262 crore. Total number of SIP accounts, however, surged to 2.18 crore, an addition of 4.74 lakh accounts during the month. The assets under management (AUM) via SIP mode crossed Rs 3 lakh crore, rising by Rs 14,600 crore in October.

“We have crossed Rs 3 lakh crore in SIP numbers which I think is an inflection point. It is a positive sign,” said NS Venkatesh, CEO at Amfi.

The net fund flow to the equity mutual funds schemes dipped further to Rs 6,026 crore from last month’s Rs 6,609 crore, a drop of 8.8 per cent. Venkatesh is not too troubled by the drop and think it is sustainable.

The large cap funds saw a net inflow of Rs 1,182.25 crore, multicap funds Rs 1,344.86 crore, midcap funds Rs 1,091 crore and smallcap funds of Rs 678 crore. All segments saw a lower net inflow than those in September.

The total AUM of mutual funds in India rose to Rs 26.32 lakh crore in October from Rs 24.50 lakh crore last month, that means a growth of Rs 1.33 lakh crore. The biggest driver to the growth was a massive inflow to liquid funds, at Rs 93,202.96 crore.

“The market is showing signs of positive momentum. The mutual funds are also mirroring it. If we look at the Sensex change that is at 3.78 per cent MoM and 16 per cent YoY. The mutual fund AUM growth is at 18 per cent,” remarked Venkatesh.

Venkatesh said he personally believes that equity market is on a bull run and it should sustain the positive momentum. “Definitely, we will see more positive move as US-China trade related problem gets resolved and global macro numbers improve. Back home, the Indian government is doing whatever is possible within their limit to ensure that the economy comes back to the fast lane. The market is taking it positively and moving upwards.”

He added that with equity market doing well then we should see equity funds doing reasonably well and flows should increase from current levels.

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