The net outflows from equity mutual fund schemes continued for the fourth straight month at Rs 2,725 crore in October as the redemption pressure continued. The redemptions hit a 19-month high of Rs 20,239 crore, up from Rs 17,686 crore in September, according to data released by the Association of Mutual Funds in India. Together, in the last four months equity schemes have seen net outflows to the tune of Rs 9,939 crore. However, the gross inflows during this period has been rising - it increased from Rs 14,142 crore to Rs 17, 514, during the period. Thus, on a cumulative basis, these schemes have seen net inflows of Rs 1,771 crore so far this year till October. But, it has shrunk by a wide margin compared to Rs 47,580 crore net inflows during the same period last year.
All the major equity-oriented categories of mutual fund schemes saw net outflows in October. Multi-cap funds recorded highest outflows of Rs 1,903 crore followed by contra funds witnessing outflows close to Rs 1,200 crore. The mid-cap and small-cap funds collectively saw net outflows of Rs 1,040 crore during the month. The sectoral funds recorded much higher inflows at Rs 2,215 crore in October compared to just Rs 13 crore a month earlier.
The monthly systematic investment plans or SIP contribution marginally improved to Rs 7,800 crore compared to Rs 7,788.37 crore in September.
Overall, the mutual fund industry witnessed a positive flow at Rs 98,576 crore during the month compared to outflows of Rs 52,091 crore in the preceding month. This was supported by a surge in net inflows to debt schemes of Rs 1,10,467 crore against outflows of Rs 51,963 crore in September. As a result, the industry's assets under management rose to a record high of Rs 28.22 lakh crore as on October 31, 2020.