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Net flows rise further, buoyed by liquid and equity schemes

* Overall net inflows came in at INR462b for Nov’21 (v/s inflows of INR383b reported in Oct’21). The flows are highest seen in the past five months.

* Industry flows stood at INR2.5t in FY22YTD (v/s INR2.7t in FY21YTD), driven by strong flows in equity (INR666b) and hybrid (INR889b) schemes. Debt schemes saw outflows of INR297b.

* The number of folio additions remained strong at 2.6m, driven by equity, hybrid, and other schemes. Liquid funds saw a further reduction in the folio count.

* SIP flows reached new highs of INR110b, indicating growth of 51% YoY and 5% MoM. The number of SIP accounts opened up during the month stood at ~1.4m.

Debt + liquid see net outflows in Nov’21

Debt flows turned negative yet again (four of eight months in FY22 have seen negative flows) at INR379b (v/s inflows of INR183b in Oct’21). The higher quantum of outflows was attributable to outflows from most of the sub-segments. More pronounced outflows were seen in the Low Duration, Ultra Short Duration, Corporate Funds, and Banking & PSU Fund schemes. Liquid funds saw net inflows of INR528b (v/s outflows of INR64b in Oct’21). Debt AUM remained flat MoM at INR10.5t, whereas liquid AUM saw marginal growth of 1.8% on a MoM basis; it witnessed decline of 3.5% YoY.

Equity + hybrid continues to see positive inflows

Net inflows in equity schemes recovered after three consecutive months of decline. Net inflows stood at INR107b (v/s INR51b in Oct’21). Funds raised in NFOs came in at INR4.8b, indicating strong flows in existing schemes. This trend has been observed in the past couple of months. Within the Equity categories, Largecap and Sectoral/Thematic schemes saw the highest net inflows in Nov’21. Hybrid flows stood at INR94b v/s INR104b in Oct’21 (Oct inflows included NFOs of INR52b). Positive flows in the Hybrid category were largely led by Dynamic Asset Allocation / Balanced Advantage. Redemptions at INR309b (Equity + Hybrid) have been the lowest since May’21. Equity AUM was flat, with a just 0.4% MoM increase to INR13.3b, as gains from positive flows were offset by weak market performance. Hybrid AUM saw growth of 55% YoY / 2.4% MoM to INR4.9t.

Other schemes see net inflows, with traction in other ETFs

Other schemes saw positive flows of INR110b (flat MoM). Gold ETFs continued to see decent momentum with INR6.8b in positive flows (v/s INR3b in positive flows in Oct’21). Other ETFs and index funds saw continued healthy inflows at INR65b and INR35b, respectively.

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