The mutual fund industry witnessed a net outflow of Rs 1,985 crore across all segments, mainly owing to withdrawal from liquid or money market category, reports The Economic Times.
Inflows into equity mutual funds touched 11-month high in February even as the broader market witnessed heavy volatility amid concerns over the impact of coronavirus. The mutual fund industry witnessed a net outflow of Rs 1,985 crore across all segments, mainly owing to withdrawal from liquid or money market category. Some other categories like value/contra funds and dividend yield funds also saw outflows.
“Continued vibrancy in monthly SIP flows at INR 8,513 crore, and net inflows in to Equity AUMs at record high this fiscal at INR 10,796 crore, has resulted in Mutual Fund AAUMs achieving the all-time high milestone at INR 28.29 Lakh crore. Market indices have grown year-on-year by 6% against 15 % jump in MF industry AUM. We expect continued buoyancy in SIP flows in March too, though a few institutional investors may reassess their investment strategy, given the deep correction in markets. ELSS schemes continue to find favour with individual investors, with positive net flows at INR 871 crores during the month, despite the Budget for 2020-21 proposing alternate simplified tax structure,’’ said NS Venkatesh, CEO, AMFI.
In comparison, an inflow of Rs 1.2 lakh crore was seen in January. Net inflows into equity and equity-linked schemes rose from Rs 7,547 crore in January to Rs 10,760 crore in February, data by the Association of Mutual Funds in India showed on Wednesday.
''Individual investors continue to repose trust in the equity market, investing through Mutual Funds via the SIP route and am happy to note that SIP monthly contributions have breached the INR 8,000 crore mark for the 15th consecutive month,” added Venkatesh
This is the highest since March 2019, when equity schemes attracted an inflow to the tune of Rs 11,756 crore. The inflow is well spread between the category of funds such as large-cap, mid-cap, small-cap and multi-cap, among others.
Large-cap, mid-cap and small-cap funds saw inflows of Rs 1,607 crore, Rs 1,451 crore and Rs 1,498 crore, respectively during the month under review.
Besides, gold ETFs saw the highest inflows of Rs 1,483 crore in February amid selloff in the equity markets. This was in comparison to Rs 202 crore inflow seen in the safe haven instrument. Interestingly, investments into gold ETFs have been rising for the fourth straight month.
The assets under management of the 42-players mutual fund industry dropped by 2.3 per cent to Rs 27.23 lakh crore in February-end from Rs 27.86 lakh crore in January-end.