Equity funds see net inflows of close to Rs. 5,500 crore in May

Sustained inflows of Rs. 2,800 crore every month in equity funds through SIPs has helped equity funds get sustained inflows, say experts.  

Investors continued to pour money in equity funds in May. The latest AMFI data shows that equity funds including ELSS and ETFs have received net inflows of close to Rs. 5,500 crore in May.

Nilesh Shah, MD & CEO, Kotak MF attributed this to sustained inflows in equity funds through SIPs. “The mutual fund industry has been receiving inflows of Rs.2,800 crore per month in equity funds through SIPs. This is due to effort of AMCs and IFAs who have created awareness about benefits of investments through SIPs. ”

As a result, the AUM of equity funds including ELSS and ETFs grew by 4% from Rs. 4.16 lakh crore in April to Rs. 4.33 lakh crore May.

This trend was similar in balanced funds category. Balanced funds received Rs. 974 crore in May. Shah pointed out that many investors have poured in money in balanced funds in anticipation of a rate cut and the recent rally in equity market.

Among debt fund category, income funds received net inflows of Rs. 5,688 crore in May. As a result, the AUM in this category increased by 1.6% from Rs. 6.01 lakh crore in April to Rs. 6.11 lakh crore in May. Income funds now constitute 44% of the total Rs. 13.82 lakh crore industry AUM as on May 2016.

However, liquid and gilt funds collectively witnessed net outflows of Rs. 63,400 crore in May.

All in all, the industry’s AUM dipped marginally by 3% from Rs. 14.22 lakh crore in April 2016 to Rs. 13.82 lakh crore in May 2016 due to outflows from liquid funds.

Monthly inflow/outflow and category wise AUM as on May 2016.

Source: AMFI