Despite NFOs, equity mutual fund inflow flat at Rs 8,700 crore in Sept

Despite NFOs, equity mutual fund inflow flat at Rs 8,700 crore in Sept

NEW DELHI: Inflows to equity mutual funds stabilised in September and was flat on a month-on-month basis. Much of the contribution was from new fund offers, a trend seen in the last couple of months.

Amfi data released for the month of September said investors poured in a net Rs 8,677.41 crore in equity mutual fund schemes, against the previous month’s deposit of Rs 8,666.68 crore. Equity mutual funds saw a total inflow of Rs 36,656.66 crore and outflow of Rs 27,979.25 crore.

Multicap funds saw the biggest inflow at Rs 3,569.45 crore while sectoral and flexicap funds drew investments of more than Rs 2,000 crore each. Midcap funds were also in demand during the month, getting inflow of more than Rs 1,000 crore. ELSS and small cap funds were among those that saw outflows. NFOs across categories mobilised Rs 8,283 crore.

Thanks to inflows, domestic institutional investors, which mostly comprise mutual fund managers, bought a net Rs 5,948.8 crore worth of stocks, against Rs 6,894.7 crore in the previous month. FIIs were also net buyers in September and invested Rs 13,154 crore in the equity market, as per NSDL data.

Debt mutual fund schemes saw net outflows of Rs 63,910.23 crore, compared to Rs 1,074.44 crore inflow in August. Quarter-end withdrawal is usual in debt mutual funds as companies withdraw money to pay their obligations. Liquid funds saw withdrawal of Rs 48,379.18 crore, followed by Rs 16,609.25 crore from low duration funds. Overnight fund saw investment of Rs 16,312.04 crore.

The total mutual fund AUM as on September 30 declined to Rs 36,73,893.13 crore, thanks to a net outflow of Rs 47,257.34 crore. Mark to market gains also supported the rise in AUM (assets under management). BSE Sensex climbed 2.73 per cent during June, while BSE Midcap advanced 5.87 per cent and BSE Smallcap added 4.32 per cent.

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