After the default of IL&FS hit liquid schemes in September 2018, mutual fund houses went on a spree of launching overnight funds that prove to be less risky
In the current financial year (2019-2020), the total inflows through SIPs stood at Rs 82,929 crore, according to AMFI CEO NS Venkatesh.
Venkatesh expects large inflows to continue in the mid-cap category in the coming months as well given the attractive valuations of midcaps.
Industry experts believe that the government's plan to tax dividend at the hands of investors could make dividend plans in equity and balanced schemes unattractive and investors may move towards growth plans.
"Some of the proposals are also aimed at bringing parity with comparable investment avenues, making mutual funds more retail investor friendly," said NS Venkatesh, Chief Executive Officer of AMFI.
In its Budget proposals to the Finance Ministry, the industry body has also demanded that the government recognise mutual funds (MFs) as specified long-term assets, qualifying for Long-Term Capital Gains (LTCG), as well as bring ULIPs of life insurance companies and equity MF schemes on par.
Currently, the mutual fund industry, which consists of 43 players, offers 26 mid-cap schemes and 21 small-cap funds with the total Assets Under Management (AUM) of Rs 133,496 crore.
Liquid fund outflow came at Rs 71,158.5 crore against an inflow of Rs 6,938 crore MoM, AMFI data shows.
The changes in the small, mid and large-cap club done by AMFI is seen on the expected lines, said some brokerages.
In order to ensure uniformity and clarity, the market regulator SEBI had in 2017 defined small-caps, mid-caps and large-caps.
From April to November, the industry added 5,709 new individual ARNs as against an addition of 13,272 ARNs in the same period last year
Net inflows into equity mutual funds, including closed-ended schemes, fell drastically in November compared to Rs 6,000 crore in the previous month
Sakshi Batra does a 3-Point Analysis on what has led to the 15 percent growth in mutual funds assets year-on-year.
In the calendar year 2019 so far, total inflows through SIPs stood at Rs 65,880 crore.
Although most individual categories that invest in fixed-income securities or debt funds saw a rise in flows compared with the last quarter, outflow from liquid and credit risk categories were significant enough to negate most of the positive flows in other categories.
Around 13 percent of retail investors chose to invest directly while 22 percent of HNI assets were invested directly
Mutual fund experts attributed the drop to the entry of new investors.
Equity assets have a longer average holding period as compared to non-equity assets
The addition of folios suggests that investors were undeterred by the market volatility.
The net inflows into equity mutual fund schemes fell to Rs 6,037.78 crore in October from Rs 12,622 crore a year ago while the year-on-year SIP numbers indicate a growth.
The 44-player industry logged an assets under management (AUM) of Rs 24.5 lakh crore in September-end, according to data from the Association of Mutual Funds in India (Amfi).
Investors seem to have stayed off credit risk funds following numerous credit events, indicating a sharp decline in their risk appetite
Liquid funds, which are used by banks and corporates to park surplus cash, recorded the highest amount of outflows last month
Industry experts attributed the minimal rise in average AUM to outflows from debt funds, particularly credit risk funds