MF industry AUM down by 12.54% in the month of September

According to the data published by AMFI, in the month of September liquid fund saw redemption to the tune of Rs 2.11 lakh crore, one of the highest in recent times. In addition to the ‘liquid funds’, ‘income funds’, ‘GILT’ and ‘Gold ETF’ also saw an outflow in the month gone by. Liquid funds or money market segment invests in cash assets such as treasury bills, certificates of deposit and commercial paper for a shorter horizon. These outflows have resulted into fall in the industry asset under management (AUM) by 12.54 per cent.

The best part of the data released by AMFI was that despite the sharp cut in equity indices, the inflows in the equity schemes has increased. For the month of September 2018, equity schemes excluding arbitrage funds have received Rs. 10,237 crore. ELSS has received another Rs. 935 crore. If we include inflows of balanced and arbitrage funds, total inflows to the equity schemes comes to around Rs. 14,312 crore.

The reason for such growth in inflows in the equity scheme can be attributed to retail investors, who seems to be maturing and instead of getting perturbed by such falls are taking this as an opportunity to invest more. This is also reflected in the rise of total folios, which now stands at Rs. 7.75 crores higher by 26 per cent on yearly basis.