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  • MF News Close to 40% of the industry’s net inflows come from equity funds in April –June

    Close to 40% of the industry’s net inflows come from equity funds in April –June

    The quarter ending June 2018 recorded Rs. 51,676 crore of net inflows in equities compared to Rs. 61,561 crore in the preceding quarter.
    Shreeta Rege Jul 10, 2018

    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

     
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