As per the latest data of Amfi, the mutual fund industry clocked an inflow of Rs. 1.26 lakh cr in the month of November taking the total assets under management (AUM) to a record high of Rs. 21.8 lakh crore.
In the current fiscal year, the inflow in mutual fund schemes until November totaled to Rs. 3.8 lakh crore.
Bajaj Capital CEO Rahul Parikh said, "Mega reform announcements from the government, including PSU bank recapitalisation, Bharatmala Project, have driven expectations of a solid earnings recovery in the next 2-3 years. Sentiments were also boosted by India's upgrade by Moody's and continued FPI flows in equities".
In the month of October, the industry received an inflow of over Rs. 50,000 crore. The higher inflow during the last month is mainly contributed by investment in equity schemes, ELSS and liquid funds.
On an individual basis, liquid funds or money market instruments such as T-bills, CDs and commercial paper clocked a net inflow of more than Rs. 77,000 crore.
Equity and ELSS schemes garnered a huge Rs. 20,300 crore for the industry while over Rs. 7600 crore was poured in balanced funds. An additional inflow of Rs. 9300 crore was reported in the debt funds.
On the contrary, there was net outflow to the tune of Rs. 89 crore from gold ETFs.
The industry primarily cheers higher retail participation for this tremendous growth in AUM.