Fixed income funds take the lead in October

Fixed income funds saw the largest net inflows among all fund categories in October.

Apart from gold exchange-traded funds, no other category saw net inflows in the month, according to data from the Association of Mutual Funds in India (AMFI).

Fixed income funds saw inflows of Rs 1,51,271 crore, pushing the total net inflows of domestic mutual funds to Rs 1,41,291 crore. In October last year, the fixed income category had witnessed net outflows of Rs 52,820 crore.

“This is mainly due to the institutional money which slipped out of the system in September and came back in October,” said a manager of a fixed income fund.

The inflows were mainly in ultra short-term funds, said another manager.

Interestingly, on a month-on-month basis, the fixed income group had seen net outflows of Rs 1,12,232 crore in September.

So far in the current financial year, fixed income funds have recorded the largest inflows. According to Amfi data, net inflows in income funds between April and October were Rs 2,53,226 crore, whereas during the same period last year, there was a net outflow of Rs 32,925 crore from the category.

In October, liquid and money market funds saw the largest net outflow of Rs 7,344 crore, followed by equity funds (Rs 2,123 crore) and gilt funds (Rs 210 crore).

The assets under management of the domestic fund market were Rs 7,74,796 crore on October 31, of which income funds contributed 60 per cent with Rs 4,63,430 crore.