Balanced, liquid and income schemes witnessed net outflow, while inflows into equity funds declined sharply in September to Rs 6,600 crore from Rs 9,150 crore in August
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.
“Taking an aggregate view of the mutual fund industry is not appropriate, given the fact that around 35 percent of the AUM is into equities on an AUM size of Rs. 25.47 lakh crore base,” Umesh Mehta, Head of Research, Samco Securities, told Moneycontrol.
“Liquid and debt funds are witnessing turbulent times because the economy is ailing under some sort of liquidity crisis. It is, therefore, natural to expect continued pressure on debt and liquid schemes in the medium term,” he said.
Mehta added that equity scheme flows (SIP) were constant at around Rs 8,200 crore a month, indicating retail investors’ confidence in the equity market.
A list of top 30 stocks, from ICICI Securities, that fund managers bought and sold in September:
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