Mutual funds’ AUMs hit a record Rs21.4 trillion in October
Mumbai: Mutual funds’ assets under management (AUMs) hit a record of Rs21.4 trillion in October, as falling fixed deposit rates and rising stocks encouraged more people to put money in mutual funds.
According to data from the Association of Mutual Funds in India (Amfi) released on Tuesday, total AUMs rose nearly 5%, helped by strong inflows in income and equity schemes.
Equity schemes’ AUM touched a record Rs7.08 trillion, up 7.4% from a month before. Net inflows into equity schemes, though lower than the previous month, were still strong at Rs16,002 crore.
“The investors seem to be taking the long-term view and not too perturbed by the rising valuation,” said Navneet Munot, chief investment officer, SBI Funds Management Pvt. Ltd.
BSE’s benchmark Sensex touched a record high of 33,731.19 on Monday, and was down 1.07% on Tuesday.
On 4 November, Sensex traded at 22.07 times fiscal year 2018 price to earnings, the highest in the current year so far.
“Investors are betting on the revival in the economy and corporate profitability,” added Munot.
Munot said investments through SIP (systematic investment plan) route was going strong.
SIPs allow investors to regularly invest small amounts that go into equities instead of making lump sum investments at various points of time. Such investments are mostly made on a monthly or quarterly basis, although it is possible to make them even every week.
Equity mutual funds have seen a surge in inflows in recent times, as falling bank deposit rates have prompted retail investors to opt for investing in equities through the mutual fund route to park their savings.