INSUBCONTINENT EXCLUSIVE:
The inflows into mutual fund (MF) schemes through the systematic investment plan (SIP) route rose for the fourth straight month in
October, crossing Rs 13,000 crore for the first time, even as equity schemes struggled to deliver in the recent past.
Notwithstanding
strong inflows via SIPs, net investments in active equity schemes in October slumped 33 per cent month-on-month (MoM) to Rs 9,400 crore,
indicating a major decline in lump sum investments.
On the passive side, net inflows were down 25 per cent MoM to Rs 10,261 crore,
reveals data released by the Association of Mutual Funds in India (Amfi).
N S Venkatesh, chief executive officer (CEO) of Amfi, said MF
They have risen consistently, from Rs 8,000 crore in pre-pandemic times to Rs 13,000 crore in October this year.
The rising interest of
retail investors was first attributed to a market rally, but now that the market has remained rangebound for over a year, top industry
few months of net-flow data clearly show the maturity of investors as there has been a relentless net-buying of equity, irrespective of the
Management Company, said the MF industry is in a sweet spot as the strong flow of retail money has brought down volatility
A lower volatility is helping the industry increase inflows.
Foreign investors have pulled out record money from the Indian market this
investors kept pumping money into the market by buying equities and investing through MFs.
According to Pradeepkumar, this support from
domestic investors saved the market from a major correction and, in turn, helped the MF industry to continue bringing new investors into its
fold.
However, the picture may not be as rosy as the gross SIP inflow data exhibits.
A look at the net SIP inflow data (available until
September) shows investors have been pulling out higher amounts from their SIP accounts in the past few months.
In September, investors
were a result of festivities, higher expenses due to rising inflation, and surging equated monthly instalments of home
loans.
Notwithstanding the rise in interest rates, net investments in debt funds remained in negative territory in October
Except for small net inflows in long-duration and gilt funds, all other non-cash debt funds witnessed significant outflows.
Debt funds
were expected to recoup investor interest as a wave of rate hikes in recent months pushed the yield-to-maturity (YTM) of debt funds to 6-7
per cent for shorter duration funds like liquid funds and 7-8 per cent for longer-duration funds like corporate bond funds.
Even if fund
the interest rates being offered by fixed deposits by top banks.
The inflows into mutual fund (MF) schemes through the systematic
investment plan (SIP) route rose for the fourth straight month in October, crossing Rs 13,000 crore for the first time, even as equity
schemes struggled to deliver in the recent past.
Notwithstanding strong inflows via SIPs, net investments in active equity schemes in
October slumped 33 per cent month-on-month (MoM) to Rs 9,400 crore, indicating a major decline in lump sum investments.
On the passive
side, net inflows were down 25 per cent MoM to Rs 10,261 crore, reveals data released by the Association of Mutual Funds in India
They have risen consistently, from Rs 8,000 crore in pre-pandemic times to Rs 13,000 crore in October this year.
The rising interest of
retail investors was first attributed to a market rally, but now that the market has remained rangebound for over a year, top industry
few months of net-flow data clearly show the maturity of investors as there has been a relentless net-buying of equity, irrespective of the
Management Company, said the MF industry is in a sweet spot as the strong flow of retail money has brought down volatility
A lower volatility is helping the industry increase inflows.
Foreign investors have pulled out record money from the Indian market this
investors kept pumping money into the market by buying equities and investing through MFs.
According to Pradeepkumar, this support from
domestic investors saved the market from a major correction and, in turn, helped the MF industry to continue bringing new investors into its
fold.
However, the picture may not be as rosy as the gross SIP inflow data exhibits.
A look at the net SIP inflow data (available until
September) shows investors have been pulling out higher amounts from their SIP accounts in the past few months.
In September, investors
were a result of festivities, higher expenses due to rising inflation, and surging equated monthly instalments of home
loans.
Notwithstanding the rise in interest rates, net investments in debt funds remained in negative territory in October
Except for small net inflows in long-duration and gilt funds, all other non-cash debt funds witnessed significant outflows.
Debt funds
were expected to recoup investor interest as a wave of rate hikes in recent months pushed the yield-to-maturity (YTM) of debt funds to 6-7
per cent for shorter duration funds like liquid funds and 7-8 per cent for longer-duration funds like corporate bond funds.
Even if fund
the interest rates being offered by fixed deposits by top banks.
