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Investor flow into equity mutual funds at Rs 20,308 cr in November

Monthly SIP inflow is Rs 6,000 crore, with a little over 1.75 million accounts

Chandan Kishore Kant  |  Mumbai 

Mutual fund

Equity (MFs) saw net of Rs 20,308 crore in November, despite weakness in the

This is the second time after August that equity schemes got monthly inflow in excess of Rs 20,000 crore. The average inflow for the previous four months was Rs 18,900 crore.

With this, for the year is Rs 1.36 lakh crore, highest yet in a calendar year. The total of is Rs 8.3 lakh crore or 37 per cent of (AUM) in the sector, which also rose to a record Rs 22.8 lakh crore at the end of November. Overall saw an increase of 6.5 per cent over the month.

Barring gilt schemes and gold funds, all other fund categories had inflow. in the sector was Rs 1.26 lakh crore, led by liquid and money market funds which brought Rs 77,400 crore.

Sector executives say MFs as a product are establishing a strong connect with Other factors such a lower rate of interest in bank deposits and a weak outlook in the other traditional avenues of gold and real estate are aiding the process.

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According to Sundeep Sikka, chief executive at Reliance Nippon Life MF, it's the beginning of a strong wave for MFS, with increasingly accepting these as vehicles. "India has a great potential and the industry has still a lot to do to reach out to more investors," he adds. "The good part is are realising the importance and potential of done through the SIP (Systematic Plan) mode."

Monthly is Rs 6,000 crore, with a little over 1.75 million accounts. This adds consistency and stickiness to the flows, besides giving stability to

Fund managers have no dearth of money in their hands to pump in the market. Over the past three years, they have put in Rs 2 lakh crore, a strong counter-balance to any withdrawal by foreign Rising participation in stocks through equity MF schemes, many believe, is a big structural change in India's capital market. The sector says it would reach an of about Rs 95 trillion by 2025, given the current pace.

First Published: Fri, December 08 2017. 01:27 IST
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