Equity flows slip 78 percent in November

New Delhi: Net inflows into equity mutual funds dipped sharply to multi-year lows in November as on one hand, outflows from credit risk funds continued, while inflows into equity funds fell as much as 85 percent.

Net inflows into equities stood at Rs 933 crore last month, a three-year low and a drop of nearly 85 percent month-on-month, according to data released by the Association of Mutual Funds in India (AMFI).

Equity ETFs registered inflows of Rs 2,954 crore in November as compared to Rs 5,906 crore in October.

“Equity net inflows have fallen sharply in November due to profit-booking by investors,” said NS Venkatesh, CEO, AMFI.

Credit risk funds continued to suffer due to huge outflows. Last month, the 44-player mutual fund industry witnessed outflows of Rs 1,899 crore from credit risk funds in November, an increase of 37.4 percent from the month-ago period. Meanwhile, SIP inflows soared to all-time highs in November, AMFI said on Monday.

It was at Rs 8,272 crore, up 27 crores from last month’s numbers. The SIP inflows in October were Rs 8,245 crore. The total number of SIP accounts climbed further to 2.94 crores, an addition of 5.33 lakh accounts during the month. The asset under management (AUM) via SIPs jumped to Rs 3.12 lakh crore, up from Rs 3.03 lakh crore in the last month.

Since the beginning of the credit crisis in July last year, credit risk funds have consecutively seen outflows every month. Continuous outflows from this category have led to a fall in AUM. So far in FY20, assets under management (AUM) of credit risk funds have fallen to Rs 63,754 crore from Rs 79,643 in April, a drop of nearly 20 percent.

The downgrade of debt instruments from IL&FS and Dewan Housing Finance (DHFL) and Reliance Home Finance by rating agencies have hurt credit risk funds. (IANS)

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