The mutual fund industry saw a drop in total Assets Under Management (AUM) in September but the trend in systematic investment plan (SIP) remained strong, which is a comforting sign.
The category wise AUM decreased by 3.8 percent (Rs 96,807 crore) to Rs 24.51 lakh crore in September 2019 on a year-on-year basis but it increased by more than 1 percent sequentially.
Balanced, Liquid & Income schemes witnessed net outflow, while inflows into equity funds declined sharply during September to Rs 6,600 crore from Rs 9,150 crore in August. However, SIP inflows remained strong at Rs 8,262 crore.
Flows into equity funds slowed down in September, suggesting a possibility of a reversal in the trend if markets continue to underperform, but analysts are not worried.