Mutual fund SIPs, inflows remain strong despite volatility

NEW DELHI: Despite the sustained promoting pressure within the equity markets, investors proceed to position money in mutual funds (MFs). Fund homes won Rs 7985 crore thru systematic funding plans (SIPs) in October, a 42% building up on a year-on-year (y-o-y) basis.

Net inflows into equity MFs (together with equity-linked savings schemes or ELSS) stood at Rs 12,622 crore in October, a 6.5% development over the previous month, knowledge with the Association of Mutual Funds in India (AMFI) showed. Net inflows into equity MFs in October used to be the easiest since February this yr. A reduction in redemptions or investor exits also boosted inflows in October. Redemptions in equity MFs fell 14% in October on a month-on-month (m-o-m) basis.

The benchmark Sensex lost about 5% whilst the broad-based Nifty fell 5.6% in October. "The industry showed resilience despite the recent market events and the ensuing volatility in both debt and equity segments," stated NS Venkatesh, leader govt officer, AMFI.

"Retail inflows showed a healthy improvement of almost 30% over last month. SIPs continue to show an upward trend with monthly contributions of Rs 7985 crores as against Rs 7727 crores last month," he stated. SIPs are executed virtually entirely in equity funds. The mounted income section contributes best about 5% in volume terms and about 2% in worth terms to general SIPs.

MFs noticed net inflows of Rs 35529 crore on an general basis (across all classes) in October in comparison to outflows of about Rs 2.three lakh crore within the earlier month, AMFI knowledge showed. The general net inflows stood at round Rs 51000 crore in October 2017.

"Over the last year there has been a 30% growth in retail folios, 14% growth in retail AUM assets under management and over 40% growth in monthly SIP contributions. This shows that the retail investors continue to repose their faith in mutual funds," Venkatesh mentioned. The AUM of the MF business improved marginally on a m-o-m basis to round Rs 22.23 lakh crore in October.

Mutual fund SIPs, inflows remain strong despite volatility Mutual fund SIPs, inflows remain strong despite volatility Reviewed by Kailash on November 10, 2018 Rating: 5
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