Equity mutual funds get retail lift, attract Rs 16000 cr in Oct

New Delhi, Nov 22: Equity mutual funds registered a an inflow of over Rs 16,000 crore in October, buoyed by strong participation from retail investors, latest data with industry body Amfi showed.
This has taken the total inflow into such funds to over Rs 96,000 crore in the first seven months of the ongoing financial year.
“The mutual fund industry has been among the biggest beneficiaries of demonetisation, which resulted in low interest rates on bank deposits. The move also helped investors shift from physical assets to financial savings. Years of perseverance by industry players and the regulator seems to have paid off, finally,” Bajaj Capital CEO Rahul Parikh said.
“Inflows in April-October have already been robust. With 5 months to go in this fiscal and the burgeoning number of SIPs (Systematic Investment Plans) in equity and balanced funds, 2017-18 may go down as the best year yet for mutual fund inflows,” he added.
According to the data with the Association of Mutual Funds in India (Amfi), equity funds, which also include equity-linked saving schemes (ELSS), saw net inflows of Rs 16,002 crore in October, compared to Rs 18,936 crore in the preceding month.
This also marks the 19th straight month of inflows into equity schemes. Prior to that, such funds had witnessed a pullout of Rs 1,370 crore in March 2016.
The strong inflows have pushed the asset base of equity mutual funds by more than 7 per cent to Rs 7.08 lakh crore at the end of October, from Rs 6.6 lakh crore in the month before.