Mutual fund AUM rises 7.4% to Rs 26.33 trn in October on high equity inflow

Mutual funds' asset base increased to Rs 26.33 trillion in October-end, a rise of 7.4 per cent as compared with the preceding month, on the back of robust inflows in equity and liquid schemes.

The 44-player industry logged an assets under management (AUM) of Rs 24.5 trilion in September-end, according to data from the Association of Mutual Funds in India (Amfi).

Mutual fund houses witnessed an overall inflow of Rs 1.33 trillion last month after witnessing a redemption of Rs 1.52 trillion in September. Of these, liquid funds alone witnessed an impressive over Rs 93,200 crore last month.

Fund managers attributed growth in the asset base to higher retail participation and robust inflows in equity schemes and liquid funds.

The open-ended equity schemes witnessed an infusion of Rs 6,026 crore, while there was a small outflow of Rs 11 crore in close-ended equity plans, taking total equity inflows to Rs 6,015 crore last month. In September, net inflow in such schemes stood at Rs 6,489 crore.

Himanshu Srivastava, senior analyst manager research, Morningstar Investment Adviser India said net inflows continue to pour into the equity-oriented mutual fund schemes tracking the surge in the domestic markets. In the month of October, the category received slightly lower inflow compared to September. The inflow indicate building up of a positive investment trend.

"Series of steps taken by the government in the recent times to boost domestic economy had improved sentiments and helped the markets to surge. This has helped investors slowly gain confidence and get back to investing. Additionally, the steady flow through SIP (Systematic Investors Plan) is also keeping the momentum going," he added.

Among debt-oriented schemes, liquid funds with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon saw an infusion of Rs 93,203 crore last month as compared to an outflow of Rs 1.4 trillion in September.

Overall, debt funds saw an inflow of Rs 1.2 trillion.

Besides, gold exchange-traded funds saw an outflow of Rs 31.45 crore after witnessing inflow in the preceding two months. The safe-heaven asset saw an infusion of Rs 44 crore in September and Rs 145 crore in August.