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Outflows Hit Equity Funds

This category has witnessed outflows for the fourth consecutive month

The Assets Under Management (AUM) of the mutual fund industry reached new highs in November and went on to reach Rs 805,684.48 crore thus growing by 5.92 per cent. Similarly, the month also witnessed net inflows as well.

Investors added to the coffers by as much as Rs 45,124 crore or 5.82 per cent of its assets in October. However, Inflows were meagre when one compares it to October when it soared 22.50 per cent or Rs 1,41,291 crore, according to data provided by Association of Mutual Fund in India (AMFI).

Investors pulled the maximum amount of their money from equity funds as it registered a net outflow of Rs 1,109 crore in November. It was a respite for the category as investors had dumped a larger amount - Rs 2,123 crore in October.

This is the fourth month since August this year that the equity fund category has registered outflows. Since August, this category saw outflows to the tune of Rs 5,130 crore.

Gilt funds category continued to register net outflow for the second consecutive month. It witnessed the next highest outflows with investors taking out money to the tune of Rs 260 crore, or a percentage dip of 6.78 per cent from previous month�s assets. The balanced fund category too registered outflows though meager ones.

On the other end of the spectrum, it was the income funds category, which witnessed the maximum inflows in November worth Rs 37, 649 that accounted for 8.12 per cent of its October�s assets.

Liquid/money market funds witnessed second highest net inflows of Rs 8,581 crore in November. This comes after investors pulled out Rs 7, 344 crore, making it the category to register the highest outflow in October.

Gold ETFs continued their golden run after registering inflows to the tune of Rs 65 crore, thus soaring by 5.99 per cent. This category has witnessed inflows in October as well as September as well to the tune of Rs 45 and Rs 76 crore respectively.

The month of November witnessed one fund being launched in the open ended category � Religare PSU Equity whose collection went up to Rs 229 crore. On the other hand, there were nine funds being launched in the Income category whose collections soared to Rs 690 crore while there was one fund launched in the Open end Fund of Fund (FOF) which would be investing overseas � Mirae Asset China Advantage Fund.

 

Net Inflow/Outflow
Category    Oct' 09    Nov' 09    Change (%)*
Balanced   -182   -2   -0.01
ELSS   -27   36   0.17
Equity   -2123   -1109   -0.69
Fund of Funds Investing Overseas   -81   -97   -3.40
Gilt   -210   -260   -6.78
Gold ETFs   45   65   5.99
Income   151271   37649   8.12
Liquid/Money Market   -7344   8581   8.23
Other ETFs   -58   261   30.07
Total    141291    45124    5.82
Source: AMFI (Includes open and close ended funds)
*Change (%) over the previous month's assets; Figures in Rs crore