Equity schemes received net inflows of ₹14,100 crore in September compared to ₹6,120 crore in the previous month, according to data released by the Association of Mutual Funds in India (AMFI). Flows through systematic investment plans (SIPs) rose to a new all-time high of ₹12,976 crore, compared to ₹12,693 crore in August.
Average assets under management (AUM) inched up to ₹39.88 lakh crore as against the previous month’s ₹39.53 lakh crore. The industry’s total AUM declined by ₹92,000 crore to ₹38.42 lakh crore in September.
“Investors were willing to shrug off short-term global headwinds because domestic macros are healthy and the corporate earnings outlook is good,” said G Pradeepkumar, CEO of Union Mutual Fund.
The Sensex and Nifty fell over 3.5% in September.
All categories of equity mutual funds saw inflows with sector schemes seeing the highest inflow of ₹4,419 crore. Among diversified categories, flexi-cap funds saw the highest inflow of ₹2,401 crore, followed by mid-cap funds at ₹2,151 crore and small-cap funds at ₹1,825 crore.
Debt mutual funds witnessed outflows of ₹65,372 crore during the month as corporates withdrew money to pay advance tax. This led to liquid funds seeing outflows of ₹59,970 crore. Ultra-short and low-duration funds too saw withdrawals of ₹16,000 crore, while money market funds saw outflows of ₹11,232 crore. Risk-averse investors found safety in overnight funds which saw inflows of ₹33,128 crore.
With interest rates set to remain firm, analysts said investors must stick with debt schemes that invest in short-duration securities.
Dynamic asset allocation funds, which invest in a mix of debt and equity based on market valuations, saw inflows of ₹524 crore, while aggressive hybrid funds which allocate 65-75% of their portfolio to equities, saw inflows of ₹760 crore.
Arbitrage funds saw outflows of ₹4,022 crore for the fourth consecutive month. Distributors said investors are moving this money to debt funds, mainly ultra short-term and liquid funds on expectations of better returns.
Gold exchange-traded funds (ETFs) saw outflows of ₹330 crore after two months of inflows.