MF Data Snapshot: Highest ever AUM; Debt funds continue inflows trend
The mutual fund industry recorded an overall net inflow of ₹27,194 crore across all segments in November, taking the industry’s overall assets under management (AUM) to the highest ever.
The assets under management (AUM) of the mutual fund industry surged to highest-ever at over ₹30 lakh crore in November-end from ₹28.22 lakh crore recorded in October-end. The overall net inflows were lower than the previous month, dragged by rise in outflows in equity and hybrid schemes as well as fall in inflows in debt funds for the month under review.
The growth and equity-oriented schemes under the open-ended
schemes registered a rise in net outflow of ₹12,917.3 crore in November as compared to ₹2,724.9 crore outflows in the previous month, as per the monthly data released by the Association of Mutual Funds of India (AMFI).
All the fund category under the equity-oriented scheme saw sell-off in November even as the stock market indices touched record-high levels. Large Cap funds witnessed the biggest outflow of ₹3,289 crore during the month, followed by Multi Cap fund with ₹2,842 crore outflows. Value/Contra fund, Mid Cap as well as Small Cap fund registered more than ₹1,000 crore worth outflows. The tax-saving Equity-linked savings scheme (ELSS) continued to record a net outflow for the third consecutive month at ₹804 crore from last month’s ₹₹274.4 crore outflow.
The chart below shows the equity flows of three months i.e., September (₹-734.4 crore), October (₹-2,724.9 crore) and November (₹-12,917.3 crore). The equity-oriented mutual funds witnessed net outflows for the fifth straight month.
The income and debt-oriented schemes supported the overall AUM of the mutual fund industry by recording inflows in November at ₹44,983.8 crore, however it was lower than October’s ₹1,10,466 crore worth inflows. Outflows recorded in Liquid fund and Overnight fund pushed the inflows of the overall debt schemes down. Low-duration fund saw inflows of ₹27,107.9 crore, followed by Short-duration fund and Corporate Bond fund that garnered inflows of more than ₹11,000 crore during the month.
Credit Risk Fund continued the outflows trend as it saw ₹15.4 crore of negative flows, better than previous month of ₹414.8 crore of sell-off.
Coming to the Hybrid schemes (mix of equity and debt), the scheme’s outflow in November came at ₹5,249 crore as compared to October’s outflow of ₹1,681.8 crore. The scheme was dragged by high redemptions in Balanced Hybrid fund. Conservative Hybrid Fund was the only category under the scheme to have seen inflows for the month.
After registering the inflows of nearly ₹384 crore in October, Gold exchange-traded funds (ETF) flows slipped to the negative trend as it recorded ₹141 crore outflows in November amid fall in gold prices. Index funds also registered outflows for the month as compared to inflows in the previous months.
The chart depicts the total contribution made by systematic investment plans (SIPs) in the last six months. In November 2020, the SIP inflows dipped slightly to ₹7,302 crore as compared to ₹7,800 crore in October 2020.
The total number of SIP folios/accounts saw a marginal jump to 3.4 crore during the month from 3.37 crore month-on-month (MoM).
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