Growth & Equity Schemes Down By 28% In September: AMFI

Mumbai, October 9: The income and debt-oriented schemes witnessed a negative inflow in the month of October, as per the data released by the Association of Mutual Funds in India (AMFI) on October 9, 2019. The net outflows from Income and debt-oriented schemes stood at Rs. 1,58,032.84 crore for the month of September 2019 as compared to an inflow of Rs. 91,126.76 crore witnessed during August 2019. Although the open-ended growth and equity oriented schemes saw a net inflow of Rs. 6,609 crore in September 2019, it was down by 28 per cent when compared to Rs. 9,152.43 crore in August 2019.  

“The dip in growth and equity-oriented schemes is not a trend. We have to wait and see how the markets are moving and numbers are coming in. There are also advance tax implications being quarter ended September. We cannot put a trend based on this number and wait and see how the markets are moving. Going forward, if the equity markets start showing growth, we should see positive upward trend in mutual funds too,” said N S Venkatesh, chief executive, AMFI.  He also explained that liquid funds have seen redemptions, which is a phenomenon at the quarter end, for the advance tax purposes and the same was reflected in this month. 

Further, the average assets under management (AAUM) of the overall mutual fund industry for the month of September has gone down marginally by 0.14 per cent at Rs. 25,60,422.71 crore from Rs. 25,63,934.79 crore, in August 2019. That said, the industry AUM stood at Rs. 24,50,787 crores for September 2019 and the Retail AUM was Rs. 11,23,779 crores. Total amount collected through systematic investment plans (SIPs) during September 2019 stood at Rs. 8,262.94 crore as compared to Rs. 8,230.76 crore in August 2019. 

The SIP accounts as on for the month of September 2019, stood at 2.83 crore as compared to 2.81 crore in August 2019. “We have seen positive growth in the mutual fund market from the retail investors. The regulator has done a phenomenal job in mitigating the risks in the debt market investments. For equity funds, we see the growth is mirroring the markets. The new SIP account opening are showing robust growth. SIP is here to stay and when the broader markets show performance, we see SIP outperforming,” said Venkatesh.