Mutual funds log `2 lakh cr inflows in first half of fiscal

According to data from Association of Mutual Funds in India (Amfi), equity and equity linked schemes attracted over Rs 80,000 crore, and balanced funds received more than Rs 47,000 crore. Besides, Rs 28,600 crore was invested in liquid or money market fund category.

In contrast, gold ETFs continued to see net outflow of Rs 388 crore.

"The huge inflow could be attributed into equity, balanced and money market funds with robust participation from retail and HNI investors," said Anshul Saigal, portfolio manager at Kotak Mutual Fund. Bajaj Capital CEO Rahul Parikh said Indian investors have now assimilated mutual funds and the credit goes to awareness programmes and endeavours by regulators and asset management companies. In all, investors poured in a net of Rs 2,02,001 crore in MF schemes in the first six months of the ongoing fiscal, as compared to Rs 2,34,564 crore in April-September 2016-17.

Liquid and money market funds invest mainly in money market instruments like commercial papers, treasury bills, term deposits and certificate of deposits. These funds have a lower maturity period and do not have any lock in period.

Saigal said that investors are taking the Systematic Investment Plan route to invest in mutual funds. At present, the industry receives about Rs 5,000 crore every month through SIPs an investment vehicle that allows investors to invest in small amounts periodically, instead of lumpsum. Overall, the AUM of the MF industry, comprising 42 players, reached Rs 20.4 lakh crore in September end from Rs 17.54 lakh crore at the end of March.