Mutual Fund Redemptions Took A 6-Month Low Dip In October

This is to inform you that last month Mutual Funds took a dip to record a 6-month low decreasing by 1.4 percent MoM taking its value to Rs 20.7 trillion in October 2023. The 6-month low dip came after the market indices including Nifty50 fell by 2.8 percent MoM. Notably, Equity AUM for domestic MFs including index funds and ELSS reduced to Rs 20.7 trillion. In September this year, Nifty50  achieved the milestone of 20,000 but the next month the market indices consolidated following international and local markets stunned by the ongoing war between Israel and Palestinian group Hamas. Keep reading this article and fetch more information about it. Swipe down the page and read more details.

mutual funds

Prior to closing at 559 points lower or 2.8 percent MoM, Nifty50 reportedly oscillated 1012 points in October which was the steepest MoM decline in the year. While FII (foreign institutional investor) outflows have been sharp in the last two months, they were compensated by stronger DII (domestic institutional investor) inflows. Reportedly DIIs recorded the highest inflows in October this year in the last seven months at $3.4 billion. While the Foreign Institutional Investors saw outflows at $2.7 billion for the second consecutive month. Shift to the next section and read more details.

Equity AUM (assets under management) for domestic MFs (Mutual Funds) (including index funds and ELSS) dropped 1.4 percent MoM to Rs 20.7 trillion in October 2023 due to a decline in the market indices. Moreover, the October month saw a spike in sales of equity schemes up to 4.3 percent. The pace of redemptions slowed down to Rs 260 billion by 14.8 percent which is the lowest in the past six months. Brokerage firm Motilal Oswal stated that consequently, net inflows accelerated from Rs 155 billion in September 2023 to Rs 220 billion in October 2023. Continue reading this article and get more details.

Also Read:  Q2 results 2023: ICICI Securities share price surges over 7% to touch 52-week high on robust

Total assets under management for the Mutual Fund industry surged 0.3 percent MoM to Rs 46.7 trillion in Oct 2023 thanks to a monthly increase in AUM for liquid (Rs 425 billion), arbitrage (Rs 29 billion), income (Rs 38 billion), Gilt (Rs 23 billion), and gold ETFs (Rs 24 billion) funds but offset by a month-on-month decline in AUM for equities (Rs 286 billion), balanced funds (Rs 29 billion), and other ETFs (Rs 79 billion). Among the Top 10 funds, the maximum month-on-month decline was seen in Aditya Birla Sun Life Mutual Fund (-4.5%), Axis Mutual Fund (-3.5%), Mirae Asset Mutual Fund (-2.5%), DSP Mutual Fund (-2.5%), and SBI Mutual Fund (-2.5%). Stay tuned.

Amzad Khan
Amzad Khan

Hey there, guys. I am Amzad Khan. I enjoy writing on topics related to my interests in gaming and technology. My work has attracted a dedicated fan base thanks to the fresh and unexpected angle I bring to each piece.