Mutual funds' asset base rises 8% till November-end: Here's what experts have to say

Mutual funds' asset base rose to a little over Rs 24 lakh crore by November-end, an increase of 8 percent from the preceding month, on strong inflow in liquid schemes.

According to Association of Mutual Funds of India (AMFI) data, the asset under management (AUM) of the industry, comprising 42 players, climbed from Rs 22.23 lakh crore at the end of October, to Rs 24.03 lakh crore in November-end. Equity schemes for the month of November have come in at Rs 7,579 crore.

A Balasubramanian, MD and CEO, Aditya Birla Sun Life MF and Vishal Kapoor, CEO, IDFC MF, shared their views and outlook.

Overall it is a good news because flows have been holding up despite holiday month, said Kapoor.

“The good news is also that systematic investment plans (SIPs) in general seems to be still holding up. Our estimate would be that the number of SIP accounts would have grown but we will wait for more data on that," he said.

Definitely the month of November was a little different from the previous months because of the number of working days being short and the regulatory changes have got implemented from October 23, said Balasubramanian.

"All in all, if you look at the Rs 8,000-9,000 crore average flows - which are roughly about Rs 7,000 crore that comes in the form of SIP and additional of about Rs 1,000-1,500 crore that comes in the form of lump sum – and if you take it on an average basis for the full year, if the run rate is anywhere around Rs 8,000-9,000 crore, I think the overall net inflows in equity mutual funds will continue," he added.

I am not worried about a few thousand crore being lower in the month of November as against the previous run rate,” said Balasubramanian.