Mutual funds in September: Equity mutual fund inflows see a dip, debt fund outflows see sharp rise

Association of Mutual Funds in India (AMFI) recent data showed that equity mutual fund inflows slipped month-on-month and was at Rs 14,091.26 crore in September 2023. The inflows recorded in August were at Rs 20,245.26 crore, which was 30 per cent more than in September, mostly due to heavy demand in small-cap and sectoral funds. 

The asset under management (AUM) of the mutual fund industry stood at Rs 46.58 lakh crore as on September 30. The equity AUM contribution shot up marginally to Rs 19.08 lakh crore from the previous month's Rs 18.6 lakh crore.

The overall AUM for retail investors' bets on equity and hybrid schemes in August was at Rs 24.38 lakh crore across 12.30 crore portfolios.

Mid and small-cap funds have outperformed large-cap funds and ELSS funds or the tax-saving funds in September.

Under equity mutual funds, the small cap category received the second highest inflows. The category saw a total inflow of Rs 2,678.47 crore, compared to Rs 4,264.82 crore in August. The sectoral/thematic category received the highest inflows of Rs 3,146.85 crore.

Large caps saw an outflow of Rs 110.6 crore as compared to Rs 349 crore of outflows in August. Whereas, mid cap funds saw inflows of Rs 2,000.9 last month as compared to Rs 2,512.3 crore in August.

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Most debt mutual funds except for long duration funds and gilt funds saw heavy outflows in September. Hybrid fund inflow for the month of September sees a rise at Rs 18,650 crore against inflows of Rs 17,082 crore (MoM). 

Liquid fund yet again saw an outflow of Rs 74,177 crore against the outflow of Rs 26,824 crore in August. ELSS outflow widened to Rs 141 crore against Rs 27 crore outflows on a monthly basis.

As per the latest AMFI data, the contribution via systematic investment plans (SIPs) touched a fresh all-time high of Rs 16,042 crore in September. In August, the SIP contribution was at a record high of Rs 15,245 crore through SIPs offered by mutual fund players. 

Around 16 open-ended NFOs were floated in September, which together mobilised Rs 7,795 crore. No close-ended NFOs were floated in September.

Other funds presented a mixed bag of investment trends. Gilt funds and long-duration funds attracted inflows, while all other schemes, including Ultra Short Duration Fund, Low Duration Fund, Short Duration Fund, Medium Duration Fund, Medium to Long Duration Fund, Dynamic Bond Fund, Corporate Bond Fund, Credit Risk Fund, Banking and PSU Fund, and Gilt Fund with a 10-year constant duration, saw marginal to heavy outflows.

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