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MF News Equity funds receive record inflows of Rs.31,000 crore in August

Equity funds receive record inflows of Rs.31,000 crore in August

Overall, the total AUM of the MF Industry crossed Rs.20 lakh crore milestone for the first time to reach Rs.20.59 lakh crore in August.
Padmaja Choudhury Sep 7, 2017

Equity funds have received an all-time high net inflows of Rs.30,658 crore in August. The latest AMFI data shows that inflows in equity mutual funds including pure equity funds, balanced, ELSS and equity ETFs has increased by 37% or Rs.8,314 crore compared to Rs.22,344 crore in July.

As a result, the total equity AUM has increased by Rs.22,458 crore to reach a record high at Rs.8.26 lakh crore in August.

In the pure equity funds category, the industry has received Rs.19,515 crore in August compared to Rs.12037, a growth of close to 62%. Industry officials attribute this to volatility in equity markets and inflows in arbitrage funds.

G Pradeepkumar, CEO, Union Mutual Fund says that many investors have put their money in equity funds due to volatility in equity markets last month.  “Many investors believe that markets would do well in the coming years. These investors have been waiting of an opportune time. Another reason behind this rally is increasing appetite of investment to invest in mutual funds through SIPs. The industry has been receiving over Rs.5000 crore through SIPs,” he said.

Seconding Pradeepkumar’s view, Mumbai-based Vinod Jain of Jain Investments feels that there is a shift in investor behaviour. “Now investors wait for markets to correct to invest in equity funds. In addition, the industry has not seen redemption pressure in August.”

Jain also pointed out that many investors have been channelizing their matured fixed deposits in equity funds to get better returns.

BSE Sensex and Nifty 50 declined 2.5% and 1.6% respectively in August. Also, equity funds saw 21% decline in redemption to Rs.11,564 crore compared to last month  .  

Another reason for healthy inflows in equity funds is inflows in arbitrage funds. DP Singh, ED & CMO, SBI Mutual Fund told Cafemutual that the industry has received close to Rs.8000 crore from arbitrage funds. In fact, his fund house has received inflows of Rs. 400 crore in their arbitrage fund, he added.

Balanced funds followed pure equity funds. Investors have put Rs.8,783 crore in balanced funds in August. The AUM of balanced funds reached Rs.1.28 lakh crore. Industry officials are of the view that most of the inflows in balanced funds is due to increasing participation of HNIs through balanced advantage funds.

Overall, the total net inflows in August across all categories stood at Rs.61,701 crore. As a result, the total AUM of the MF Industry crossed Rs.20 lakh crore milestone for the first time to reach Rs.20.59 lakh crore in August

Stefan Groening, Director - Investment Solutions, Sharekhan says that the growth in AUM is due to good fundamentals. He believes that if the growth continues the AUM could reach Rs.30 lakh crore in 2019.

Monthly AUM and net inflows/outflows for August 2017

Category

August AUM in Rs. Crore

Net inflow/outflow

Equity

5,73,839

19,515

ELSS

70,087

847

Balanced

1,28,320

8,783

ETFs other

53,734

1,513

ETFs gold

5,189

(58)

Income

8,58,188

8,390

Gilt

17,069

1,420

Liquid

3,49,039

21,352

FOFs investing overseas

1,632

(61)

Total

20,59,289

61,701

 

 

 

1 Comment
YOGESH LADDHA · 2 months ago
Sector funds are suggested or not this time ?
Specially Banking & Infra
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