Strong inflows into debt schemes; mutual funds' asset base hit all-time high of Rs 27 lakh cr

Assets base of mutual fund industry surpassed Rs 27 lakh crore-mark by November-end due to increase in inflows in debt-oriented schemes including banking and PSU funds, with a high exposure to highest-rated bonds.

According to Association of Mutual Funds in India (Amfi) data, there were Rs 26.33 lakh crore assets under management (AUM) in October, compared to Rs 27.04 lakh crore by November-end. The month-on-month growth was at 3 percent.

There were overall inflow of Rs 54,419 crore last month compared to Rs 1.33 lakh crore in October into mutual funds. Fund managers attributed the growth in asset base to strong inflows of around Rs 51,000 crore in debt-oriented schemes.

Among debt-oriented schemes, overnight funds -- invest in securities with a maturity of one day-- received flows worth about Rs 20,650 crore, the highest among the fixed-income segment last month.

Apart from this, banking and PSU funds received to the tune of Rs 7,230 crore, while Rs 6,938 crore was infused in liquid funds, with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon.

The open-ended equity schemes witnessed an infusion of Rs 1,312 crore, while there was an outflow of Rs 379 crore in close-ended equity plans, taking total equity inflows to Rs 933 crore last month. In October, net inflow in such schemes stood at Rs 6,015 crore.

AMFI chief executive officer N S Venkatesh said: "While, equity net inflows have come down sharply in November, partly due to investors booking profits, the overall mutual fund industry AUM reached an all-time high of Rs 27 Lakh crore."

"Goal-based, long-term systematic investment plan (SIP) investments from retail investors continue to grow steadily, with SIP AUM at an all-time high at Rs 3.12 lakh crore," he added.

Besides, gold exchange-traded funds saw an inflow of over Rs 7 crore after witnessing an outflow of Rs 31.45 crore in October. Prior to that, the safe-heaven asset saw an infusion of Rs 44 crore in September and Rs 145 crore in August.