Equity MF schemes saw outflows of Rs 2,116 crore in September, the highest in the category since May. This is the third highest monthly outflow this year after May (Rs 2,910 crore) and January (Rs 2,501 crore). MF equity schemes have seen inflows in only 16 months after the entry load was abolished in August 2009.
“The market has been showing some positive gains in the last few months, with the Sensex touching the 20,000-mark last month. Investors, especially those who had entered the market 5-6 years ago, are using every rally as an opportunity to exit the market altogether,” said Debashish Mallick, CEO, IDBI AMC, adding some investors may have exited the market ahead of the festive season.
The average month-end AUM of the MF industry fell marginally by 2.7% in September to Rs 7.45 lakh crore from Rs 7.66 lakh crore in August, led by outflows from Liquid/money market schemes. The Sensex ended flat in September.
Except for fund of funds investing overseas, all other categories witnessed outflows in September. Liquid/money market schemes saw outflows of Rs 28,019 crore during the month compared with inflows of Rs 32,123 crore in August. Income funds saw outflows of Rs 1,634 crore compared with outflows of R9,274 crore the previous month.
Gilt funds saw outflows of Rs 1,546 crore in September compared with inflows of Rs 908 crore in the previous month. Modest outflows were also seen in balanced funds and gold ETFs, with the categories posting outflows of Rs 289 crore and Rs 294 crore, respectively.
In August, gold ETF schemes posted their highest monthly outflow in more than five years as the rupee's fall boosted domestic gold prices. YTD, gold ETFs have seen net outflows of Rs 1,240 crore.