Equity fund inflows lowest since April 2016, SIPs see marginal dip
Equity mutual funds saw net inflows of ₹5,257 crore in May 2020Total inflows in equity funds stood at ₹13,760 crore and total redemptions were ₹13,520 crore
Equity mutual funds saw a considerable fall in the net inflows during June which were the lowest in over four years. Net equity mutual fund inflows for the month stood at ₹241 crore, shows data released by AMFI. Last time the industry saw such poor numbers were in June 2016 with net inflows of ₹320 crore. March 2016 saw negative inflows.
Equity mutual funds saw net inflows of ₹5,257 crore in May 2020.
SIPs also witnessed a marginal fall in the monthly collection. Mutual funds collected ₹7,927.11 crore through SIPs in June as compared to ₹8,123.03 crore in May.
“Equity mutual funds have seen a considerable fall. Major outflows have happened in multi cap, large cap followed by value funds," says NS Venkatesh, Chief Executive, Amfi. “There was a small dip in SIP collections as well. It was mainly due to the covid situation. Cashflows could have got affected. The mutual fund industry has given the facility to pause the SIP to investors.. That could have also resulted in the marginal dip," Venkatesh added.
Multi cap mutual funds saw net outflows worth ₹778 crore, large cap funds saw net outflows to the tune of ₹213 crore and value funds saw negative inflows of ₹136 crore in June.
Total inflows in equity funds stood at ₹13,760 crore and total redemptions were ₹13,520 crore. Total redemptions were 74% higher than last month.
According to Amfi data, debt mutual funds saw net inflows worth ₹2,862 crore considerably lower than net inflows of ₹63,666 crore last month.
“The basic reason for lower net inflows was redemptions from the liquid funds which was a usual quarter end phenomena," says Venkatesh.
Liquid funds saw net outflows worth ₹44,226 crore in June.
Net assets under management for the industry as on June 30 stood at ₹25.49 lakh crore. Average AUM for the month was ₹26.07 lakh crore.
“We have once again crossed the 25 lakh crore AUM mark after some months now," Venkatsh said.
Gold ETFs saw net inflows of ₹494 crore vis a vis ₹815 crore in May.
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