Equity flows in MFs dip sharply, assets rise to a record in Nov.

With stock indices rising, investors opt for profit booking; gold ETFs see inflows

The total assets under management (AUM) of the mutual fund (MF) industry crossed a record ₹27 lakh crore in November even as flows dipped substantially compared with the previous month.

According to the Association of Mutual Funds in India (AMFI), the total AUM of the industry was pegged at ₹27.05 lakh crore in November, marginally higher than October’s AUM of ₹26.33 lakh crore.

While the total AUM rose, the net flows fell considerably, especially in the debt segment wherein it more than halved compared with October.

As per AMFI data, the income/debt segment saw inflows to the tune of ₹51,427.58 crore compared with over ₹1.21 lakh crore.

Overnight funds

Within the income and debt category, overnight funds saw the maximum flows at nearly ₹21,000 crore followed by funds dedicated to banks and public sector undertakings (PSUs).

Meanwhile, the equity segment also saw a similar drop in flows like the debt category. The category saw flows to the tune of ₹1,311.65 crore in November against ₹6,026.38 crore in October.

“Goal-based, long-term SIP investments from retail investors continue to grow steadily, with SIP AUM at an all-time high at ₹3.12 lakh crore,” said N.S. Venkatesh, chief executive officer, AMFI.

“While, equity net inflows have come down sharply in November, partly due to investors booking profit, the overall mutual fund industry AUM reached an all-time high of ₹27 lakh crore,” he added.

Market participants attribute the drop in flows in the equity segment to profit booking on the back of the benchmark indices touching record levels.

The rally also saw many of the side counters surging strongly, leading to many investors booking profit.

Interestingly, gold exchange-traded funds (ETFs) saw renewed investor interest with the segment registering inflows of nearly ₹8 crore, following previous month’s outflows of over ₹31 crore.