INSUBCONTINENT EXCLUSIVE:
Mumbai: Assets under management of the Indian mutual fund industry surged by Rs 1.33 lakh crore or 7.4 per cent on a monthly basis to touch
a record Rs 26.33 lakh crore in October this year, aided primarily by inflows of Rs 93,202 crore in liquid funds
Retail investors continued to invest through the SIP route, pouring in Rs 8,245 crore compared with Rs 8,262 crore in September 2019
and PSU debt funds, which primarily invest in a portfolio of AAA companies, saw inflows to the tune of Rs 4,855 crore
Investors continued to shun credit risk funds with the category seeing outflows of Rs 1,382 crore
Credit risk funds, which invest in riskier debt securities, saw outflows of Rs 17,517 crore since April 2019.
Despite the potential of
earning double-digit returns in this category, appetite from investors has been poor because of the deterioration in the financials of
nonbanking finance companies and the happenings in the fixed income space over the past 15 months
Investors are sticking to high quality debt papers these days and prefer categories such as liquid and banking and PSU debt funds.
After
registering net outflows worth Rs 1.41 lakh crore in September 2019, liquid funds saw net inflows worth Rs 93,202 crore in October 2019
As per CARE Research, this is the highest net inflow into liquid funds reported since November 2018.
Arbitrage funds, which invest in a mix
of shares and stock futures, continued to see inflows of Rs 2,644 crore as rich investors looking for cheaper valuations in equities
preferred this category over debt funds
They have seen high inflows in the recent past as they enjoyed better taxation than debt funds.