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Stock Analysis, IPO, Mutual Funds, Bonds & More

Mutual funds witness net outflows in September, SIP flows continue to rise

The AUM has fallen to Rs 25,60,423 crore in September from Rs 25,63,935 crore in August.

, ET Online|
Oct 09, 2019, 04.28 PM IST
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MF analysis
Mutual fund industry has witnessed net outflows to the tune of Rs 1,51,790 crore in September, as against net inflows of Rs 1,02,538 crore last month, shows the monthly data released by Amfi. Average assets under management also came down marginally in September.

The AUM has fallen to Rs 25,60,423 crore in September from Rs 25,63,935 crore in August.

However, the SIP contribution continued to rise: from Rs 8,231 crore last month to Rs 8,262.94 crore in September .

Amfi chief said the total outflow is mainly due to outflows from liquid funds.

"Liquid funds have seen redemptions which is a phenomenon we have seen at the quarter end, for the advance tax purposes and the same is reflected in this month, September being a quarter-end.We have seen net outflows in ultra short duration, low duration, money market fund categories as well," said NS Venkatesh, Chief Executive, Amfi.

“But the net outflows in September this year are far lower than the outflows in September last year at Rs 2, 30,158 crore, the Amfi chief added.

Liquid funds have witnessed net outflows to the tune of Rs 1.40 lakh crore. Ultra Short duration funds have seen total net outflows of Rs 6,783 crore, low duration have witnessed negative flows of Rs 2,131 crore and money market fund has seen Rs -6,278 crore.

Equity funds received net Rs 6,609 crore, 28 per cent lower month-on-month.

Amfi chief believes, going forward, if the equity markets start showing growth we should see positive upward trend in mutual funds too.

“We have seen positive growth in the mutual fund market from the retail investors. The regulator has done a phenomenal job in mitigating the risks in the debt market investments. For equity funds, we see the growth is mirroring the markets. The new SIP account opening are showing the robust growth. SIP is here to stay and when the broader markets show performance we see SIP outperforming," said NS Venkatesh.

Hybrid funds category witnessed net inflows of Rs 2,027 crore. However, balanced hybrid funds saw net outflows worth Rs 1,930 crore.

ELSS or tax-saving funds mobilised Rs 1,174 crore in September.

Credit risk funds saw net outflows of Rs 2,351 crore.

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