Even though the mutual industry was seeing volatile days, according to the latest report by AMFI, there appears to be some good news for investors and market watchers. In this blog, we look at the state of mutual funds in India as of October 2022. Take a closer look!
The monthly contribution into the mutual fund industry via SIP (Systematic Investment Plan) has increased significantly. According to AMFI, the SIP investments touched a high of Rs. 12,976.3 crores in September. AMFI’s Chief Executive N S Venkatesh said that they hoped to see the SIP investment contributions reach the Rs. 13,000 crore per month mark. Moreover, it should be noted that the number of SIP accounts increased to 5.83 crores during this period up to 30 September 2022.
It was expected that there would be massive outflow from equity mutual funds in India, however, that was not the case. Equity inflows stayed positive during the month. Equity inflows grew by 130% up to Rs. 14,099.73 crores from the corresponding inflows of Rs. 6,119.58 crores in August. This hike in equity is expected given that there was a lot of withdrawal from debt mutual funds.
Experts expressed that this move augured well for Indian markets after 2 months of poor performance. It goes to show that Indian investors have put their faith in the Indian economy despite the global market trends and volatility in markets.
However, the debt mutual funds in India have taken a serious hit. There has been tremendous outflow of wealth from the debt mutual funds with outflows to the tune of Rs. 65,000 crores witnessed. Liquid funds alone saw Rs. 60,000 crores being lost.
N S Venkatesh said that this was because of advance tax payments as reason for the outflows. Moreover, the interest rates have been hiked globally which forced the Indian government to increase the interest rates domestically as well. As you may well be aware, a hike in interest rates usually leads to an exit from debt mutual funds. Once the interest rate stabilizes, there will be a corresponding inflow into debt mutual funds again.
Furthermore, gold ETFs saw a net inflow of Rs. 330 crore in September.
To sum up, in September mutual fund industry launched around 21 schemes and gained funds worth Rs. 8,374 crores.
So, given the present scenario of mutual funds in India as of September, the investor reading this can make the next set of moves. Furthermore, you can also choose to invest through Money Assist which is a mutual fund agent in Kolkata. Choose to invest today and appreciate your capital!
