homepersonal finance NewsEquity mutual fund inflows slip in September, debt fund outflows see sharp rise
Equity mutual fund inflows slip in September, debt fund outflows see sharp rise
The asset under management (AUM) of the mutual fund industry stood at Rs 46.58 lakh crore as on September 30, the latest AMFI data showed.
Equity mutual fund inflows slipped month-on-month in September 2023, but remained healthy at Rs 13,857 crore, according to Association of Mutual Funds in India (AMFI) data. Midcap and smallcap funds continued to attract investments, with both categories showing positive inflows. In contrast, large-cap funds experienced outflows during the month, the data showed.
Smallcap fund inflows stood at Rs 2,678 crore, a reduction from the Rs 4,265 crore recorded in August. Midcap funds, while still attracting investments, saw a decrease in inflows, from Rs 2,512 crore to Rs 2,001 crore.
According to Akhil Chaturvedi, Chief Business Officer, Motilal Oswal Asset Management Company, small-cap flows' decline can be attributed to certain fund houses temporarily halting inflows, possibly due to concerns about rich valuations in the mid and small-cap space.
The most striking movement was witnessed in debt funds, where outflows surged significantly, primarily due to September marking the quarter-end. Debt equity fund outflows skyrocketed to Rs 1.01 lakh crore, compared to Rs 25,873 crore in the previous month.
Hybrid funds witnessed steady inflows, amounting to Rs 18,650 crore, surpassing the figures of August, which were at Rs 17,082 crore.
"This trend reflects the prevalent risk-off sentiment in the market, with investors seeking to diversify their investments while maintaining a focus on capital protection," Chaturvedi said.
Liquid funds, on the other hand, saw substantial outflows, totalling Rs 74,177 crore, a sharp increase from the Rs 26,824 crore in outflows recorded in August 2023.
Exchange-traded funds (ETFs) experienced an upswing in investor interest, with inflows of Rs 3,243 crore compared to Rs 1,863 crore the previous month. Dividend funds saw a positive inflow of Rs 255 crore, while Equity-Linked Savings Schemes (ELSS) witnessed outflows amounting to Rs 141 crore. Corporate bond funds also faced outflows amounting to Rs 2,460 crore, while large-cap funds recorded outflows of Rs 111 crore.
Meanwhile, the Systematic Investment Plan (SIP) inflows stood at Rs 16,402 crore versus Rs 15,814 crore inflows in August 2023. The cumulative Asset Under Management (AUM) for the mutual fund industry stood at Rs 46.58 lakh crore as of September 30, as indicated by the AMFI data.
(Edited by : Amrita)
First Published: Oct 11, 2023 11:57 AM IST
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