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Inflows Bolster MF Industry

The month of October saw the industry recover from the losses chalked up in September

The month of October saw the industry recover from the losses chalked up in September

Unlike September, the month of October saw the mutual fund industry register an increase in its assets as money coming into the funds increased substantially.

Investors added to the industry’s coffers by as much as Rs 1,41,291 crore, resulting in a percentage change, over September, of 22.50 per cent.

However, there is a flipside to this news. Open-end income schemes and gold ETFs were the only two categories that registered inflows, while all other categories registered outflows.

If we restrict ourselves just to open-end income schemes, then these registered inflows of Rs 1,49,957 crore, thus going up by 52.35 per cent.

This comes in the wake of September having witnessed outflows from not only close-end funds, but also open-end income schemes as well.

Gold ETFs, on the other hand, witnessed an inflow of Rs 45 crore, thus registering an increase of 4.46 per cent though it was less than that in September. It registered inflows of Rs 76 crore in September while inflows were to the tune of Rs 15 crore in the month of August.

Investors pulled out money in the equity category too, causing an overall outflow to the extent of Rs 2,123 crore, making for a dip of 1.25 per cent.

Meanwhile, in the close-end category, October witnessed inflows to the tune of Rs 1,349 crore, an increase of 5.48 per cent, but it had seen Rs 10,143 crore getting redeemed in September.

Ten new Fixed Maturity Plans (FMPs) were launched in October, collecting up to Rs 3,937 crore - nine FMPs were launched in September.

Four open-end income schemes were launched in October, including Axis Treasury Advantage Fund, DBS Chola Select Income Fund- Flexi Debt Fund, DWS Treasury Fund and Shinsei Treasury Advantage Fund. Their collection added up to Rs 1,804 crore.

There was a lone fund launch in the open-end liquid fund category, namely Axis Liquid Fund, whose collection went up to Rs 529 crore.

Recovering Lost Ground
Net Inflow/Outflow (Rs cr)
Category Sep '09 Oct '09 Change (%)*
Balanced -255 -182 -1.03
ELSS 47 -27 -0.12
Equity -1756 -2123 -1.25
Fund of Funds Investing Overseas -222 -81 -2.69
Gilt 55 -210 -5.22
Gold ETFs 76 45 4.46
Income -112232 151271 48.50
Liquid/Money Market -30093 -7344 -7.51
Other ETFs 53 -58 -6.09
Total -144327 141291 22.50
Source: AMFI (includes open and close-end schemes)
*Change (%) over the previous month's assets