Mutual Funds Net Inflows Surges More Than 300 Percent MoM In November

Mutual Funds

According to the Association of Mutual Funds in India (AMFI), Assets Under Management (AUM) of the Indian mutual fund industry grew 8.08% MoM and 5.45% YoY to Rs. 24.03 lakh crore in November 2018, reveals ICRA’s Monthly Update on Mutual Funds Industry for November 2018

AUM under Equity (including Equity Linked Savings Schemes or ELSS), Balanced, and other ETFs came in at Rs. 10.44 lakh crore, up 3.74% MoM and 8.92% YoY.

The mutual fund industry witnessed net inflows of Rs. 142,359 crore in November 2018, 300% higher on a sequential basis. The growth was mainly due to a significant surge in inflows in the liquid/money market category, which witnessed net inflows of Rs. 136,135 crore in November 2018, up more than 140% MoM.

The net inflows for the month were also supported by a lower outflow (Rs. 6,518 crores in the month under review as against outflow of Rs. 37,642 crores in October 2018) in the income category. Inflows in Equity funds (including ELSS) declined 33.34% to Rs. 8,414 crore MoM amid volatile capital markets, global trade war tensions and uncertainty over the upcoming state elections in November 2018.

Notably, gold exchange-traded funds registered net inflows of Rs. 10 crores in November 2018. The category had last witnessed net inflows two years back in October 2016.

Folios increase both MoM and YoY to 7.97 crore

According to data from the Securities and Exchange Board of India (SEBI), the total folio count at the end of November 2018 was 7.97 crores, up 0.88% MoM and 18.58% YoY. Out of the 7.06 lakh new folios added in the month, maximum new additions of 6.36 lakh folios were in Equity category (including ELSS). Liquid, Balanced and Gold ETF categories added 0.50 lakh, 0.34 lakh, and 0.06 lakh folios, respectively. However, folios in Income category declined.

Mutual Funds manage more equity assets than insurers

According to data from National Securities Depository Limited (NSDL), mutual funds for the first time managed more money in equities than insurers in October 2018. Equity assets managed by insurance companies came in at Rs. 9.22 lakh crore as against Rs. 9.32 lakh crore by mutual funds.

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