New Delhi: Investor interest in gold exchange-traded funds (Gold ETFs) increased sharply in September. According to data released by the Association of Mutual Funds in India (AMFI) on Monday, net investments in gold ETFs increased from ₹2,597 crore in August to ₹4,451 crore in September, registering a month-on-month growth of 71.4 percent.
Despite increased investments in gold ETFs, the mutual fund industry suffered a net outflow of ₹1.33 lakh crore in September. The sector had received net inflows of ₹41,353 crore in August. This change was primarily due to large withdrawals from fixed-income mutual fund schemes.
Heavy Withdrawals from Debt Mutual Funds
Debt-oriented mutual fund schemes saw the highest outflows in September. Net outflows from these schemes increased to ₹1.83 lakh crore, compared to ₹8,127 crore in August.
The massive outflows also impacted the mutual fund industry’s total assets under management (AUM). Total AUM declined from ₹87.08 lakh crore in August to ₹82.64 lakh crore in September.
Investments in Equity Mutual Funds Increased by 30.6%
On the other hand, investment in equity mutual fund schemes continued to grow at a steady pace. Net inflows into these schemes increased by 30.6 percent to ₹38,307 crore in September, compared to ₹29,328 crore in August.
Among the equity categories, small-cap funds remained the preferred choice of investors. These funds received net inflows of ₹9,039 crore in September, up from ₹7,973 crore in August. Investments in mid-cap funds increased to ₹7,835 crore, compared to ₹6,989 crore in the previous month.
Investments in flexi-cap funds also increased. These schemes saw net inflows of ₹6,702 crore in September, compared to ₹5,059 crore in August. Similarly, investments in sectoral and thematic funds increased to ₹3,640 crore, compared to ₹1,713 crore in August.
Investments in large-cap funds returned, SIP contributions reached record levels
Investor sentiment in large-cap funds also changed during September. After net outflows of ₹1,147 crore in August, these funds saw net inflows of ₹859 crore in September.
Meanwhile, investments in multi-asset allocation funds remained largely stable. Net inflows into these schemes amounted to ₹3,667 crore in September, compared to ₹3,671 crore in August.
Investor contributions through Systematic Investment Plans (SIPs) also remained strong. Monthly SIP contributions rose to a record ₹32,490 crore in September, up from ₹32,297 crore in August.