Net inflows in equity schemes decline 34% in Nov 2018

The total AUM of the mutual fund industry grew 8.1% mom to Rs24.03 lakh cr in November 2018 against 0.9% mom in October 2018. In November 2018. The AUM of all categories of mutual funds increased except Gold ETFs and FoFs (Overseas).

Dec 07, 2018 11:12 IST India Infoline News Service

The total AUM of the mutual fund industry grew 8.1% mom (month-on-month) to Rs24.03 lakh cr in November 2018 against a 0.9% mom growth in October 2018. In November 2018, the AUM of all category of mutual funds increased except Gold ETFs and FoFs (Overseas).

The AUM of equity schemes (excluding Arbitrage Funds), ELSS, and Balanced Funds rose ~3.8%, ~4.7%%, and ~1.8%, respectively, in November 2018. The overall increase of ~8.1% in AUM of mutual fund industry in November 2018 was basically due to a ~30.6% increase in the AUM of liquid funds.

AUM (in Rs cr)
Nov '18 Oct '18 Change (%)
Income 6,89,470 6,89,034 0.1
Infrastructure Debt Fund 2,705 2,698 0.3
Equity Schemes (Excluding Arbitrage Funds) 6,84,665 6,59,407 3.8
Arbitrage Funds 59,538 57,044 4.4
Balanced 1,77,702 1,74,523 1.8
Liquid/Money Market 5,93,546 4,54,432 30.6
Gilt 8,002 7,820 2.3
ELSS – Equity 86,559 82,702 4.7
Gold ETF 4,385 4,621 -5.1
Other ETFs 94,863 89,515 6.0
Fund of Funds Investing Overseas 1,699 1,764 -3.7
TOTAL 24,03,134 22,23,560 8.1
(Source: AMFI)

Key Highlights:
  • Income funds continued to witness net outflows for consecutive seven months, but saw a reduction in November 2018. Investors are redeeming income funds as their returns are disappointing due to rising yields. Nevertheless, the yields decreased in November 2018 as crude oil prices nosedived and the RBI infused liquidity in the markets in the aftermath of the IL&FS financial crisis.
  • Net inflows into equity schemes (excluding Arbitrage Funds) decreased ~34% mom to Rs7,579cr in November 2018 compared to Rs11,422cr in October 2018.
  • Balanced funds continued to witness a decline in net inflows to Rs215cr in November 2018 compared to Rs519cr in October 2018 and Rs731cr in September 2018.
  • Arbitrage funds witnessed net inflows of Rs2,376cr in November 2018 compared to Rs2,161cr in October 2018 and Rs79cr in September 2018.
  • Liquid/money market funds received an astonishing net inflow of Rs1.36 lakh cr in the month compared to Rs55,296cr in October 2018 and Rs2.1 lakh cr in September 2018.
Net Inflow / (Outflow) Category & Type Wise (in Rs cr)
Nov '18 Oct '18 Sep '18
Income -6,518 -37,642 -32,504
Infrastructure Debt Fund -- -- --
Equity Schemes (Excluding Arbitrage Funds) 7,579 11,422 10,237
Arbitrage Funds 2376 2161 79
Balanced 215 519 731
Liquid/ Money Market 1,36,135 55,296 -2,11,050
Gilt 61 -291 -968
ELSS – Equity 835 1200 935
Gold ETF 10 -16 -33
Other ETFs 1,634 2,820 2,409
Fund of Funds Investing Overseas 32 60 6
TOTAL 1,42,359 35,529 -2,30,158
(Source: AMFI)

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