Mutual funds asset base increased to 26.33 lakh crore at October-end, a rise of 7.4% compared with the preceding month, on the back of robust inflows into equity and liquid schemes.
The 44-player industry logged an assets under management (AUM) of 24.5 lakh crore in September-end, according to data from the Association of Mutual Funds in India (AMFI).
Mutual funds witnessed an overall inflow of 1.33 lakh crore last month after witnessing a redemption of 1.52 lakh crore in September. Of these, liquid funds alone witnessed an impressive over 93,200 crore last month.
Fund managers attributed growth in the asset base to higher retail participation and robust inflows in equity schemes and liquid funds.
Open-ended equity schemes witnessed an infusion of 6,026 crore, while there was a small outflow of 11 crore in close-ended equity plans, taking total equity inflows to 6,015 crore last month. In September, net inflow in such schemes stood at 6,489 crore.
Himanshu Srivastava, senior analyst manager, research, Morningstar Investment Adviser India, said, A series of steps taken by the government in the recent times to boost domestic economy had improved sentiments and helped the markets to surge.
This has helped investors slowly gain confidence and get back to investing.