MUMBAI: The mutual fund industry added assets worth Rs 65,439 crore in January 2019, taking total assets under management to Rs 23.37 lakh crore. Categories such as income, liquid and equity funds saw positive inflows, while balanced and gilt funds saw outflows.
Retail investors continued to pour money through systematic investment plans (SIP), with collections through this mode touching an all-time high of Rs 8,064 crore, a little more than the December collections of Rs 8,022 crore. The number of SIP accounts increased by three lakh to Rs 2.56 crore.
However, lump-sum investments into mutual funds slowed down. Retail assets, which include equity funds, balanced funds and ELSS funds, saw inflows of Rs 5,206 crore, the slowest in the last 30 months since July 2016, when the industry garnered Rs 4,585 crore.
“There has been a series of negative news flow from some very large corporates in the past one month, and these hurt investor sentiment,” said Neil Parikh, CEO, PPFAS MF, an asset manager. “Investors are also worried about the outcome of the elections. Hence, they continue to do their SIPs, but are waiting for an opportune time before committing lump-sum money.”
Share prices of the Essel group, DHFL and ADAG group companies were volatile, and some of them fell very sharply in January.
Retail investors continued to use mutual funds to help meet long-term life goals.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully..