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Retail investors rush to buy equity funds

Equity mutual funds have registered a net inflow of Rs 15,218 crore in October, buoyed by strong participation from retail investors, according to data from industry body Amfi. This has taken the total inflow into such funds to over Rs 91,000 crore in the first seven months of the ongoing financial year.

By Our Bureau
  • Published 23.11.17
  •  

Calcutta: Equity mutual funds have registered a net inflow of Rs 15,218 crore in October, buoyed by strong participation from retail investors, according to data from industry body Amfi. This has taken the total inflow into such funds to over Rs 91,000 crore in the first seven months of the ongoing financial year.

"The mutual fund industry has been among the biggest beneficiaries of demonetisation, which resulted in low interest rates on bank deposits. The move has also helped investors shift from physical assets to financial savings. Years of perseverance by industry players and the regulator seem to have paid off finally," said Rahul Parikh, CEO of Bajaj Capital.

"Inflows in April-October had been robust. With five months to go in this fiscal and the burgeoning number of SIPs (systematic investment plans) in equity and balanced funds, 2017-18 may go down as the best year yet for mutual fund inflows," he added.

Inflow into equity funds between April and October is Rs 91,283 crore compared with Rs 28,517 crore in the corresponding period a year ago.

Inflows into balanced funds and equity-linked savings schemes have surged to Rs 52,942 crore and Rs 5,076 crore, respectively, in the first seven months compared with Rs 15,213 crore and Rs 3,110 crore, respectively, in the year ago period.

Income, liquid/money market funds and gold ETFs, however, have seen a decline in inflows.

Individual investors now hold a higher share of industry's assets: 49 per cent in October 2017 compared with 45.4 per cent in October 2016. Institutional investors account for 51 per cent of the assets, of which corporate houses' share is 87 per cent. The rest are local and foreign institutions and banks.

The strong inflow in equity funds has also helped in pushing assets under management of the mutual fund industry to an all-time high of Rs 21.41 lakh crore at the end of October from Rs 20.40 lakh crore in September-end.

"We are, particularly, excited about the higher retail participation," Sharekhan director Stefan Groening said.

Parikh said digital investment platforms were going to be the big drivers for the industry.

"These platforms are the best bet to attract the young salaried generation and inculcate in them the virtues of saving and investing," he added.