Assets under management of mutual fund companies rose to ₹10.96 lakh crore in October, up 14.2 per cent from September’s closing figure of ₹9.59 lakh crore, according to Association of Mutual Funds in India data.
But the increase, Waqar Naqvi, CEO of Taurus Mutual Funds says, was because of a low base in September, which saw large-scale exits by institutional investors to close their books for the quarter and meet cash needs.
October inflows were directed back into the same channels — income and debt schemes with the former attracting ₹15,446 crore and money market schemes ₹1 lakh crore.
Nevertheless, mutual fund investments have fluctuated this year, with positive inflows in May and April followed by investors exiting and cashing in May, June, August and September. Retail investors returned to the equity markets in October, Naqvi says.
A recent report by Crisil said MFs registered a 4.6-per cent increase in retail folios in the past six months-ended September, taking the total folios to 3.80 crore. The increase was the highest since March 2009, the Crisil study had revealed.
Net inflows for October were the highest this year at ₹1.24 lakh crore . Ten equity mutual funds were launched through October, bringing in ₹2,197 crore, with another ₹7,043 crore invested in existing schemes. Net equity investments for the month was ₹5,427 crore.