In the quarter ending June 2018, majority of inflows came in liquid (Rs. 1.21 lakh crore) and equity and related schemes (pure equity, balanced, other ETF, arbitrage and ELSS) (Rs. 51,676 crore) categories. Despite recording positive flows in equities, the quantum of growth has declined compared to January to March 2018 quarter.
Ashutosh Bishnoi MD and CEO, Mahindra MF believes that there is no cause of worry. “The equity market has been volatile in the last few months. In this scenario, some investors are likely to drift away from equity markets to reduce risk. Additionally, with interest rates rising, investors are perhaps moving to interest bearing deposits and other instruments.”
“Furthermore, in periods when market cools off, long-term investors tend to book profits. This could have also resulted in the dip in inflows in the April to June quarter compared to January to March quarter. However, with overall equity inflows over Rs.50,000 crore, I do not see it as a cause of concern,” said Bishnoi.
NS Venkatesh CEO, AMFI sees this as a minor aberration and not a sustained trend owing to market volatility and redemption in arbitrage funds. Venkatesh said, “We are still observing robust SIP inflows predominantly in equities especially from B30 cities. We are confident that SIP inflows will continue to grow.”
Category-wise, equity, ELSS, balanced and other ETFs recorded positive inflows every month of the quarter, while gilt and gold ETF have seen outflows.
Net inflow/outflow in the last two quarters
|
Quarterly Inflow / Outflow (April to June 2018) |
Quarterly Inflow / Outflow (January to March 2018) |
Equity Schemes |
29962 (Excluding Arbitrage Funds) |
31041 |
Arbitrage Funds |
535 |
NA |
ELSS - Equity |
2219 |
7274 |
Balanced |
7648 |
19445 |
Other ETFs |
11312 |
3801 |
Gold ETF |
-146 |
-266 |
Income |
-38306 |
-33389 |
Gilt |
-1370 |
-3288 |
Liquid/ Money Market |
121866 |
42796 |
Fund of Funds Investing Overseas |
30 |
-55 |
Infrastructure Debt Fund |
153 |
140 |
TOTAL |
133903 |
67499 |
Source: AMFI
In terms of AUM, the top three categories in terms of asset size are equity and related categories with Rs. 10.49 lakh crore of assets, followed by income with Rs. 7.61 lakh crore and liquid with Rs. 4.58 lakh crore in June 2018. Income, equity and liquid have held their top positions in term of AUM during the quarter.
Quarter-end AUM in the last two quarters
|
AUM as on June 30, 2018 |
AUM as on March 31, 2018 |
Equity Schemes |
647659 (Excluding Arbitrage Funds) |
669207 |
Arbitrage Funds |
55747 |
NA |
ELSS - Equity |
83186 |
80583 |
Balanced |
174737 |
172151 |
Other ETFs |
88122 |
72888 |
Gold ETF |
4567 |
4806 |
Income |
760715 |
785553 |
Gilt |
9541 |
11404 |
Liquid/ Money Market |
457831 |
335525 |
Fund of Funds Investing Overseas |
1626 |
1451 |
Infrastructure Debt Fund |
2670 |
2468 |
TOTAL |
2286401 |
2136036 |