SIPs in mutual funds continue dream run, inflows rise in balanced advantage schemes: AMFI data

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Range-bound markets in October did not deter investors from pumping in funds in equity schemes. Equity mutual funds saw net inflows of Rs 5,214 crore in October, compared to Rs 8,677 crore in the previous month, according to data from the industry body AMFI. Hybrid funds garnered massive inflows of Rs 10,437 crore compared to Rs 3,587 crore earlier. The assets under management of the mutual fund industry increased to Rs 37.33 trillion from Rs 36.73 trillion in September.

SIPs rake in the flows

Systematic investment plans (SIPs) have continued to rise in popularity. The SIP book continues to post healthy progress and was at Rs 10,518 crore for the month, compared to Rs 10,351 crore in September 2021. The number of SIP accounts also went up to 4.64 crore from 4.48 crore in the same period.

Balanced advantage funds saw the largest inflows of Rs 11,219 crore. The New fund offer of NJ Balanced Advantage Fund contributed Rs 5,216 crore.

N S Venkatesh, Chief Executive, AMFI said, “It is heartening to see investors sticking to making matured choice by opting for schemes that offer prudent mix of debt and equity through Balanced Advantage schemes, Flexi-Cap schemes, and choosing mutual funds as an investment for long term financial planning for their own retirement and children’s welfare. This is quite evident from monthly SIP contribution getting consolidated at record high level.”

Assets worth Rs 2,343 crore moved out of arbitrage funds in October 2021 compared to Rs 3,009 crore in September. These schemes saw outflow for the second month in a row, after getting good inflows in the first half of the current calendar year.

Thematic and sector funds got net inflows of Rs 1,733 crore. Value and tax-saving funds continue to lose money. They saw net outflows of Rs 349 crore and Rs 488 crore, respectively. “Broadly, the mood to invest in equities continues with positive net sales in pure equity funds of Rs 5,214 crore. However, at the same time, we do see an element of profit-booking with higher absolute redemption of Rs 23,456 crore,” says Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC.

Debt mutual funds saw net inflows of Rs 12,984 crore, compared to outflows of Rs 63,910 crore.

Overseas investing gains traction

Fund of funds investing overseas saw net inflows of Rs 1,513 crore in October compared to Rs 410 crore earlier, thanks to Rs 1,148 crore mobilized by two new fund offers. Investors also took advantage of weak gold prices and preferred to invest in gold exchange traded funds (ETF). Gold ETFs got net inflows of Rs 303 crore compared to Rs 445 crore in September 2021. Decline in net inflows in Gold ETF compared to previous month can be attributed to investors shifting their focus from gold ETFs to physical bar and coin purchases during the festive month,” says Mohit Nigam, Head – PMS, Hem Securities. He foresees inflows continuing in debt schemes and small and mid-cap equity funds.

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