SIP AUM crosses INR 3 lakh crore in October 2019
Net inflows into open ended mutual funds bounced back strongly in October at INR 1,34,337 crore as institutional investors parked their surplus cash in debt mutual funds with the start of the new quarter. All the major categories including equity, debt, hybrid and index funds & ETFs witnessed net inflows. But, inflows into open ended equity funds including ELSS dropped by 8.8% to INR 6,026 crore amid profit-booking by retail investors as markets continued their uptrend.
Overall asset under management (AUM) of the industry increased by 7.4% in October compared to the previous month end and now stands at INR 26,32,824 crore.
Among open-ended equity categories including ELSS (Tax-Saver), the major sub-categories like large cap, multi cap, mid cap, small cap and ELSS funds witnessed lower inflows in October compared to the previous month. Industry experts believe that investors redeemed money from equity funds to book profits as markets bounced back. SIP AUM crossed INR 3 lakh crore last month. Although inflows for October witnessed a marginal decline of 0.2% month on month to INR 8,245 crore.
“SIP AUM crossing the ₹3 trillion landmark for the first time ever and the continual rise in SIP accounts are a positive reflection of disciplined approach adopted by the retail investor fraternity,” said AMFI CEO.
Inflows into passive funds increased sharply in October in comparison to the previous month. The category witnessed inflows of INR 6,683 crore in October vis-à-vis inflows of INR 1,521 crore in September. This was primarily on the back of follow-on-fund offering of ICICI Bharat 22 ETF and NFO of Axis NIFTY 100 Index Fund.
Overall inflows in open ended hybrid schemes declined sharply to mere INR 314 crore in October compared to INR 2,028 crore in September. Outflows from aggressive hybrid, conservative hybrid and equity savings sub category continued in October as well. Inflows into dynamic asset allocation category increased while those into arbitrage funds fell.
Overall inflows into open ended debt category rose significantly month on month to INR 1,21,140 crore in October. Primary reason for the same was hot institutional money coming back into debt funds with the start of a new quarter. Inflows into liquid funds was at INR 93,203 crore in October compared to the previous month. Inflows into ultra short, low duration, money market and short duration funds were positive after outflows in September. Outflows from credit risk and medium duration categories continued for the seventh month in a row. Inflows into Banking & PSU debt category more than doubled to INR 4,855 crore in October vis-à-vis the previous month.
It is not advisable to take investment decisions based on inflows/outflows as these can be volatile. Your investment decisions should be based on your investment objective, investment horizon and risk profile. Consider investing for long term through SIP as it ensures rupee cost averaging.
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