Inflows into equity mutual funds rose after four months even as volatility gripped the stock market.
Net investments into equity and equity-linked schemes more than doubled over the previous month to Rs 14,099.7 crore in September, according to data released by the Association of Mutual Funds in India. That’s the nineteenth straight month of inflows into such stock plans.
In September, the S&P BSE Sensex and the NSE Nifty 50 fell 2.28% and 2.56%, respectively.
SIP Contribution
Monthly contributions into systematic investment plans rose for the second straight month, hitting an all-time high of Rs 12,976.34 crore in September.
The SIP accounts grew 12.2 lakh to 5.83 crore in September.
Highlighting that India continues to remain the highest growing country in the world, NS Venkatesh, chief executive officer at AMFI, said it was “definitely” the right time to stay invested in equity in India.
“We should see more equity flows coming in,” Venkatesh said during a conference call.
Category-Wise Trends
All segments witnessed inflows in September.
Mid caps witnessed the biggest investments among segments, while large caps saw the least.
AMFI started posted granular data since April 2019.
Debt Funds
Liquid funds witnessed outflows of Rs 59,970.30 crore in September compared with an inflow of Rs 50,095.82 crore in August. Such schemes are used by companies to park short-term cash and usually see a spike in redemption at the end of a quarter.
Credit-risk funds witnessed outflows for the tenth straight month.
Net flows
All mutual fund schemes, debt and equity, saw outflows after two months, led by liquid funds and money market funds.
The money market funds saw outflows worth Rs 11,232.1 crore in September compared with inflows worth Rs 5,928.8 crore in August.
The average assets under management stood at Rs 39.88 lakh crore in September versus Rs 39.53 lakh crore in August. Net AUM fell to Rs 38.42 lakh crore from Rs 39.33 lakh crore in the previous month.
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