Shriram AMC Reports 2.97% AUM Growth in September

Deepak Ramaraju, Senior Fund Manager, Shriram AMC

“The mutual fund schemes saw an average AUM growth of 2.97% for September, primarily attributed to the market movement in September. We have seen a 10% drop in overall net inflows into the equity mutual fund schemes from Rs. 38,239 Cr to Rs. 34,302 Cr. 

Through equity markets gained 2% in September, we saw a drop in net inflows in Large, Flexi cap, Small Cap, Sectoral/ thematic, and focused funds and categories like Contra funds, Large-Mid, Dividend Yield and ELSS categories saw increased inflows. The index and gold ETFs also saw some redemptions and it seems that investors wanted to take out the profits after the stupendous run in the last few months. On the prima facie, it looks like investors are concerned about the valuation, increasing geo-political uncertainty and moderation in earnings and hence we have seen redemption from funds. However, it's too early to pinpoint that liquidity in the system is slowing down and it can’t be concluded that based on these concerns we are seeing drop in inflows. The SIP flows continue to back the Indian growth story. We will have to wait for how the global events play out – like the Chinese stimulus, the Fed Decision and the RBI’s MPC policy stance. Though in the short term, we might see FII being biased towards China, in the long term as the interest rates eases, we may see more the FII flows and the mutual funds flows may be expected to come back.”