MF Weekly: Mutual funds add 8.8 lakh accounts in September



Tata Mutual Fund announces merger of suspended plans of certain funds

Tata Mutual Fund has announced Oct 27 as the record date for the merger of suspended plans of Tata Dynamic Bond Fund, Tata Money Market Fund, Tata Gilt Securities Fund, Tata Mid Cap Fund, Tata Medium Term Fund, Tata Long Term Debt Fund, Tata Liquid Fund and Tata Corporate Bond with the regular/direct plans of the respective funds. The fund house has also approved merger of quarterly dividend plans Tata Gilt Mid Term Fund with the periodic dividend option of the respective fund.

ICICI Prudential Mutual Fund changes fund manager for a number of funds

ICICI Prudential Mutual Fund has announced the fund management allocation for a number of funds. Accordingly, Mr. Rahul Goswami will be the co fund manager with Mr. Rohan Maru and Ms. Chandni Gupta for ICICI Prudential Ultra Short Term Plan. Mr. Manish Banthia will be the co fund manager with Mr. Rohan Maru and Mr. Nikhil Kabra for ICICI Prudential Interval Fund – Annual Interval (Plan II, III and IV), ICICI Prudential Interval Fund – Quarterly Interval Plan II, ICICI Prudential Interval Fund – Series VI – Annual Interval Plan – C and D, ICICI Prudential Interval Fund – Series VII – Annual Interval Plan – C and ICICI Prudential Interval Fund IV – Quarterly Interval Plan B. The changes are applicable with immediate effect.

AMFI: SIP inflow rose to all time high in Sep 2017

Data from the Association of Mutual Funds in India (AMFI) showed that the mutual fund industry has received an average monthly inflow of Rs. 5,223 crore through Systematic Investment Plans (SIPs) for the Jul-Sep 2017. In the preceding quarter, the average monthly SIP inflow was Rs. 4,532 crore. The monthly inflows in mutual funds through SIP reached an all-time high of Rs. 5,516 crore in Sep 2017. Data showed that the industry mopped up Rs. 15,669 crore in the Jul- Sep period of FY18 through SIPs, registering a growth of 48.82% an inflow of Rs. 10,529 crore in the same period last fiscal.

Mutual funds add 8.8 lakh accounts in September

The industry which had 92.31 lakh SIP accounts in May 2016, has registered 1.28 crore accounts by March 2017, and 1.66 crore by September this year. As per data from AMFI, the industry has added 8.8 lakh SIP accounts every month on an average in the first six months of the current year, with an average SIP size of Rs 3,300 per account. The average ticket size per SIP was Rs 2,322 in March 2014, which rose to Rs 3,121 in March 2017. Gold ETFs register Rs 388 crore outflows in April- September 2017 . Gold exchange-traded funds (ETFs) continued to lose sheen as an investment class as investors pulled out Rs 388 crore from these instruments in April-September 2017. Trading in gold ETF segment has been tepid during the last four financial years. It witnessed outflows of Rs 775 crore in 2016-17, Rs 903 crore in 2015-16, Rs 1,475 crore in 2014-15 and Rs 2,293 crore in 2013-14. On the other hand, equity and equity-linked saving scheme (ELSS) saw an infusion of more than Rs 80,000 crore during the first six months (April-September) of the current financial year. This included an investment of close to Rs 19,000 crore in the last month alone. According to the latest data available with Association of Mutual Funds in India (Amfi), a net sum of Rs 388 crore was pulled out in 14 goldlinked ETFs during April-September period this year. The outflow meant assets under management (AUM) of gold funds plunged to Rs 5,148 crore at Septemberend from Rs 5,480 crore at the end of March. Withdrawal of Rs 66 crore was seen in April this year, Rs 71 crore in May, Rs 81 crore in June, Rs 38 crore in July, Rs 58 crore in August and another Rs 74 crore in September .

Mutual funds’ AUM from smaller towns rises 38% to Rs 3.8 lakh crore

The contribution of the country’s smaller towns — beyond top-15 cities (B15) — to mutual funds ‘ assets base reached to Rs 3.8 lakh crore at September-end, a sharp surge of 38 per cent from the year-ago level. Mutual Funds ‘ assets under management (AUM) from B15 locations grew from Rs 2.74 lakh crore in September 2016 to Rs 3.79 lakh crore at the end of the last month, ICRA said in a note. Awareness campaigns by asset management companies (AMCs) and industry body Association of Mutual Funds in India (AMFI) have been the growth drivers. Currently, B15 accounts for 17.7 per cent of the total assets of the industry. In September, the share of direct plans in B15 towns stood at 21 per cent compared to 46.1 per cent in T15 cities. B15 cities are those which are beyond these top 15 cities — New Delhi (including NCR), Mumbai (including Thane & Navi Mumbai), Kolkata, Chennai, Bangalore, Ahmedabad, Baroda, Chandigarh, Hyderabad, Jaipur, Kanpur, Lucknow, Panjim, Pune and Surat. The assets base of the Indian mutual fund industry, comprising 43 active players, came in at  Rs 20.40 lakh crore in September as against Rs 20.59 lakh crore in August. However, the total folio count at the end of September stood at 6.20 crore, two per cent higher than August. The growth was mainly driven by addition of 9.24 lakh new folios to the equity category (including Equity Linked Savings Scheme) and 2.16 lakh new folios to the balanced segment. However, folio count fell by 5,564 and 2,259 in Gold ETFs and Fund of Funds investing overseas, respectively, from August-end levels.

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