MUMBAI: Mutual fund inflows turned positive for the month of October and retail equity investors kept faith in mutual funds – equity funds showed net inflows of around Rs14,700 crore in October. Liquid funds that had massive redemptions in September turned positive, with net inflow of Rs 55,296 crore in October. Income schemes were the exception, with a net outflow of Rs 37,642 crore, a reflection of turmoil in the debt markets during the month.
Compared with a net outflow of Rs 2.3 lakh crore in September, October recorded a net inflow of Rs 35,259 crore. Overall assets under the management of mutual funds grew by a percentage point to Rs 22.23 lakh crore by the end of October from the previous month.“The industry showed resilience despite the recent market events and the ensuing volatility in both, debt and equity segments. Retail inflows showed a healthy improvement of almost 30 per cent over the last month. SIPs continue to show an upward trend, with monthly contributions of Rs 7,985 crore as against Rs 7,727 crore last month,” said NS Venkatesh, chief executive, AMFI.
Experts hailed the resilience and maturity of the retail investors for not reacting hastily to market movements and keeping faith in long-term equity investment through systematic investment plans (SIP). AMFI’s campaign as well as the efforts of various fund houses and agents has seen retail folios grow by 30 per cent over the last year, and 40 per cent growth in monthly SIP contributions. There has been a 14 per cent growth in retail AUM, Venkatesh said.
“We are telling investors to continue (with SIPs). But, we have to keep advising them on the kind of schemes and the need to be invested for the long term,” said Amit Singh, CEO, Investica. He expects funds flows to be steady, but not see a jump if markets remain sluggish.