NEW DELHI: The mutual fund industry continued with the positive momentum in the Septemberquarter, attracting Rs 34,765 crore, though it was a massive reduction against the Rs 1.85 lakh crore inflow in the previous quarter, mainly due to withdrawal from debt segment. Most of the asset classes saw net inflows during the July-September period of the current financial year, except for the fixed income or debt segment, which witnessed net outflows.
Overall, flows started on a strong note during the quarter under review, with net inflows of Rs 82,467 crore in July, which dipped to Rs 16,180 crore in August and ended with a disappointing Rs 63,882 crore net outflows in September, according to a report. of Morningstar India.
“Net flows over the past few years during each quarter have been irregular. The flows seen in the June quarter were the highest in four years,” it noted.
The industry’s assets under management ended at Rs 46.22 lakh crore as of September, up 5 percent from the previous quarter.
“The world economy is now facing problems related to the Russian-Ukrainian conflict, raging inflation across countries, and the inevitable raising of interest rates by central banks to end easy monetary policy. Relative to other countries, India has been resilient in terms of market efficiency, where others countries have seen a much sharper correction recently,” Melvyn SantaritaAn analyst at Morningstar India, said.
As for equity segments, inflows have been positive for the asset class over the past 10 quarters, although the momentum of flows has been erratic.
In the September quarter, net inflows increased to Rs 41,962 crore, up significantly from the last quarter when it saw net inflows of Rs 18,358 crore.
On the other hand, the asset class experienced net outflows of Rs 65,944 crore in the second quarter of the current fiscal. This came after the first quarter saw a net inflow of Rs 1.38 lakh crore — the first net inflow after six consecutive quarters of net outflows.
Industry experts attributed the huge net outflow in the quarter under review to the pre-tax demand that companies have to meet, which is the end of the quarter.
Further, the allocation category witnessed a net inflow of Rs 48,153 crore in the quarter, lower than Rs 14,021 crore it received in the previous quarter. It was the second consecutive quarter that the asset class witnessed net inflows after experiencing net outflows for three consecutive quarters.
“The solution-oriented and other categories never saw a quarter of outflows. Both categories witnessed regular net inflows despite volatile market conditions. The categories recorded net inflows of Rs 479 crore and Rs 10,115 crore, respectively, during the September quarter,” the report noted.
Overall, flows started on a strong note during the quarter under review, with net inflows of Rs 82,467 crore in July, which dipped to Rs 16,180 crore in August and ended with a disappointing Rs 63,882 crore net outflows in September, according to a report. of Morningstar India.
“Net flows over the past few years during each quarter have been irregular. The flows seen in the June quarter were the highest in four years,” it noted.
The industry’s assets under management ended at Rs 46.22 lakh crore as of September, up 5 percent from the previous quarter.
“The world economy is now facing problems related to the Russian-Ukrainian conflict, raging inflation across countries, and the inevitable raising of interest rates by central banks to end easy monetary policy. Relative to other countries, India has been resilient in terms of market efficiency, where others countries have seen a much sharper correction recently,” Melvyn SantaritaAn analyst at Morningstar India, said.
As for equity segments, inflows have been positive for the asset class over the past 10 quarters, although the momentum of flows has been erratic.
In the September quarter, net inflows increased to Rs 41,962 crore, up significantly from the last quarter when it saw net inflows of Rs 18,358 crore.
On the other hand, the asset class experienced net outflows of Rs 65,944 crore in the second quarter of the current fiscal. This came after the first quarter saw a net inflow of Rs 1.38 lakh crore — the first net inflow after six consecutive quarters of net outflows.
Industry experts attributed the huge net outflow in the quarter under review to the pre-tax demand that companies have to meet, which is the end of the quarter.
Further, the allocation category witnessed a net inflow of Rs 48,153 crore in the quarter, lower than Rs 14,021 crore it received in the previous quarter. It was the second consecutive quarter that the asset class witnessed net inflows after experiencing net outflows for three consecutive quarters.
“The solution-oriented and other categories never saw a quarter of outflows. Both categories witnessed regular net inflows despite volatile market conditions. The categories recorded net inflows of Rs 479 crore and Rs 10,115 crore, respectively, during the September quarter,” the report noted.