Equity mutual fund net inflows dropped to Rs 7,579 crore in November 2018 from Rs 11,422 crore in October 2018. This was primarily due to slowdown in gross sales in November which stood at Rs 13,234 crore as compared to Rs 18,663 crore in October 2018.
Net inflows in balanced funds too trickled down to Rs 215 crore in November 2018. In October, this category received inflows of Rs 519 crore. Equity ETFs, which track the broader indices, received Rs 1,634 crore as compared to Rs 2,820 crore in October. Arbitrage funds saw a marginal increase in net inflows in November at Rs 2,376 crore as compared to Rs 2,161 crore in October. Total equity assets increased by 4% from Rs 10 lakh crore in October 2018 (excluding arbitrage funds) to Rs 10.43 lakh crore in November 2018.
Net inflow/outflows in November 2018
Industry experts cited the ban on upfront commission, recent volatility and the upcoming state elections as the primary reasons for the dip in equity flows.
Liquid funds saw a revival of interest after the NBFC crisis showed some signs of easing. This category received net inflows of Rs 1.36 lakh crore in November 2018. Net outflows from income funds too declined from Rs -37,642 crore in October 2018 to Rs -6,518 crore in November 2018.
All in all, the industry received net inflows of Rs 1.42 lakh crore, mainly due to healthy inflows in liquid funds. As a result, the total assets under management increased by 8% from Rs 22.20 lakh crore in October 2018 to a new high of Rs 24 lakh crore in November 2018.
