Inflows in equity MFs surge to Rs 2.86 lakh cr after note-ban

Source: The Hitavada      Date: 14 Nov 2017 11:21:44


NEW DELHI,

Nov 13,

(PTI),

EQUITY mutual funds registered a staggering inflow of Rs 2.86 lakh crore in the past 11 months bolstered by the ban on high value currency notes, latest industry data showed. The sudden spike in bank deposits and consequent decline in interest rates following demonetisation on November 8, 2016 led to surge in inflow into equity mutual funds, an analyst said.

According to the Association of Mutual Funds in India (Amfi) data, equity funds received an inflow of Rs 2.86 lakh crore from November 2016 to October 2017. Prior to that, such funds had registered flows of Rs 1.5 lakh crore between October 2016 and December 2015. “Along with that optimism of investors, demonetisation actually helped the industry to attract more investments. We have seen Rs 2.86 lakh crore coming into the mutual funds but we have also seen some redemptions. After taking into account redemptions, we have a net inflow of Rs 1.35 lakh crore.

While overall assets under management (AUM) rose 32 per cent since November 2016, the equity AUM grew by 46 per cent after the note ban.Overall, the asset base of the MF industry, comprising 42 players, reached an all-time high of Rs 21.41 lakh crore in October-end, while that of equity AUM was over Rs 6.32 lakh crore.