Net outflows from equity MFs at over Rs 2,700 cr in Oct

Equity mutual fund schemes saw an outflow of Rs 2,724.95 crore in October, showed data from the Association of Mutual Funds in India (AMFI) on Monday.

According to the data, the net outflow stood at Rs 2,724.95 crore in October, compared with an outflow of Rs 734.40 crore in September.

The outflow had stood at Rs 4,000 crore in August. In July, the net outflows stood at Rs 2,480.35 crore.

Contributions through systematic investment remained flat at Rs 7,788 crore over the previous month in September.

"Open-ended equity schemes overall saw an outflow of INR 2,724.95 crore, while the categories like Large & Mid Cap Fund saw positive flows of INR 256.74 crore and Sectoral or Thematic Funds witnessed net flows of INR 2,214.67 crore due to two NFOs during October 2020," the AMFI said in a statement.

"The outflow significantly moderated for Hybrid scheme category at INR 1,681.87 crore for October 2020, as compared to INR 4,219.01 crore in September 2020 and INR 4,819.45 crore for August 2020."

Besides, the data showed that 'Total Mutual Fund AUM' as on October 31, 2020 has reached its highest ever level of Rs 28.22 lakh crore.

Furthermore, the 'Average AUM' for October was Rs 28.33 lakh crore was due to rise in retail SIP contribution and surge in net flows in overall debt schemes.

On an overall basis, the MF industry witnessed an overall positive flows at Rs 98,575.96 crore in October 2020.

In October 2020, MF SIP accounts grew to 3.37 crore, leading to a rise in monthly SIP contribution to Rs 7,800 crore, compared to Rs 7,788.37 crore in September.

"Rise in both SIP Contribution and SIP AUMs during October 2020 and continued slowing outflow in equity schemes reinforces the retail investor confidence in the mutual fund as an asset class," AMFI CEO N.S.Venkatesh said.

"This trend is reflective in economy improving further with green shoots amply visible – attractive interest rates, rise in GST collections, digitalisation-driven efficiencies making Indian corporates healthier, conducive GoI policy for attracting FDI and continued surge in FII investment coupled with favourable geo-political scenario would continue to keep Indian equity markets an attractive investment destination over a long term.".