SIP inflows into mutual funds stay strong in September 2019
Open ended equity mutual funds continued to see inflows in the month of September to the tune of INR 6,609 crore, although inflows are down by 28% compared to August and the lowest in the last four months. Importantly, SIP inflows remained robust at INR 8,263 crores. However, open ended debt funds registered an outflow of INR 1.58 lakh crore mainly due to the outflows from Liquid funds by corporates to meet their quarter end advance tax payments. Hence all categories put together, there was outflow of INR 1.48 lakh crore outflows in September, compared to inflow of INR 1.04 lakh crore in August 2019.
Overall asset under management (AUM) decreased by 3.8% in September vs August and now stands at INR 24.51 lakh crore.
Among open-ended equity categories, mid cap category witnessed higher inflows in September compared to August. Multi cap category too saw higher inflows in September thanks to the new fund launch from Sundaram MF (Sundaram Equity Fund). All the other major equity sub categories like large cap, small cap, ELSS etc. witnessed a drop in the net inflow numbers. This is majorly attributed to profit booking by investors after the market’s run up in the third week of September post corporate tax reforms.
AMFI CEO said that they have seen positive growth in mutual fund market from retail investors. The new SIP account openings are seeing robust growth and SIP route is here to stay!
Passive funds witnessed inflows of INR 1,381 crore this month, compared to outflows of INR 1,372 crore in August.
Overall inflows in open ended hybrid schemes further declined to INR 2,028 crore in September compared to INR 4,947 crore in August and INR 7,393 crore in July. Arbitrage funds stand out in this category and continue to see robust inflows at INR 4,758 crore, although down by 17% vs. August.
Overall outflows from open ended debt category was INR 1.58 lakh crore in September. Primary reason for the same was an outflow of INR 1.41 lakh crore from liquid funds. AMFI CEO opined that outflows in liquid funds are because of a quarter-end phenomenon as corporates and banks withdraw their liquid fund investments to pay quarterly advance tax and for capital adequacy respectively. For the same reason, outflows from ultra short duration category were second highest at INR 6,783 crore. Outflows from credit risk and medium duration categories continued for the sixth month in a row as investors continued their flight to safety. Safer debt categories such as Banking & PSU, Corporate Bond and Gilt are the only debt categories which saw positive inflows other than Short term category.
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.
Go ahead and start investing through SIP on Paytm Money. It was never simpler! Managing SIPs is seamless. Invest with as low as Rs 100 through SIP on Paytm Money.
