MUMBAI: Monthly flows through the systematic investment plan (SIP) route into mutual funds reached a new all-time peak, at Rs 13,307 crore in November, as retail investors continued to ignore volatility in the stock market. The fund industry’s total assets under management (AUM) too crossed the Rs 40-lakh-crore mark, also a new life-high, the latest data released by fund industry trade body AMFI showed.
November was the second successive month when the monthly SIP flows crossed the Rs 13K-crore mark. Such huge flows, over 95% of which goes into equities, are also working as a cushion to selling by foreign funds, market players said. This also reflects the improving maturity among retail investors.


According to S Ranganathan, Head of Research, LKP Securities, India being the best performing large market year to date in dollar terms, foreign funds have been booking profits but domestic flows through SIP route are at a life time high which reflects the growing maturity and confidence of the domestic investors for more than a year now.
Last month also saw a drop in the net flows compared to October, mainly on the back of redemptions by investors during the festivities, industry players said. According to N S Venkatesh, Chief Executive, AMFI, there have been outflows from retail schemes in November as people are encashing profits, the reason being increased consumption, owing to the festive season. However, Venkatesh believes retail investors have faith in mutual funds and they will re-enter the market soon.
AMFI data for November showed that while debt schemes as a category showed a net inflow of Rs 3,669 crore, the corresponding figure for equity schemes was at Rs 2,258 crore while hybrid schemes witnessed net outflow worth Rs 6,477 crore. Among passive schemes, index funds recorded net inflows of Rs 8,602 crore.


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