Equity MFs log Rs. 12,917 crore outflow in November, industry AUM reaches Rs. 30 lakh crore mark
- IBEF
- December 9, 2020
In November 2020, equity mutual funds witnessed a drastic outflow of Rs. 12,917 crore (US$ 1.75 billion), even as the industry's assets under management reached a record high of Rs. 30 lakh crore (US$ 409.9 billion).
Data from the Mutual Funds Association in India showed on Tuesday shows that last month, investors invested Rs. 44,984 crore (US$ 6.10 billion) in debt mutual funds, as compared to Rs. 1.1 lakh crore (US$ 15 billion) in October,
Overall, in the period under examination, the mutual fund industry witnessed a net inflow of Rs. 27,914 crore (US$ 3.78 billion) across all segments, compared to an inflow of Rs. 98,576 crore (US$ 13.36 billion) in October.
The mutual fund industry's assets under management (AUM) grew to a record high level of Rs. 30 lakh crore (US$ 409.9 billion) at the end of November, from Rs. 28.23 lakh crore (US$ 380 billion) at the end of October, leading to a positive inflow of debt funds.
According to the information, in November, outflow from equity and equity-linked open ended schemes was at Rs. 12,917 crore (US$ 1.75 billion) compared to Rs. 2,725 crore (US$ 369.28 million) in October. Last month, all of the equity schemes saw outflows.
In September, the equity schemes witnessed an outflow of Rs. 734 crore (US$ 99.47 million), in August, 4,000 crore (US$ 542.06 million) and in July, another Rs. 2,480 crore (US$ 336.08 million), which was their first withdrawal in over four years. Prior to this, these schemes in June had attracted Rs. 240.55 crore (US$ 32.60 million).
In November, net outflows could significantly contribute to investors' profit bookings on the basis of a rally in stock markets, experts said.
Gold exchange traded funds (ETFs) experienced an outflow of Rs. 141 crore (US$ 19.11 million) last month in addition to shares. This was the first outflow since March, when a pull out of Rs. 195 crore (US$ 26.43 million) was seen by safe haven assets.
They saw an inflow of Rs. 384 crore (US$ 52.04 million) in October.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
