Equity gains and debt loses – July industry AUM recap

Investors continue to pour money in equity funds in equity schemes in June. The latest AMFI data shows that other than equity ETFs, all other categories of equity funds - pure equity funds, ELSS, balanced funds and arbitrage funds have received net inflows of Rs.10,872 crore.

ETFs that track indices have seen outflows of Rs.4000 crore due to profit booking by EPFO, believe experts. If we include equity ETFs, the net inflows in equity funds goes down to Rs.6900 crore.

However, compared to June 2018, net inflows in equities have slowed considerably by 61% in a month. While in June 2018, equity schemes including pure equity, ELSS, balanced and equity ETFs saw inflows to the tune Rs. 18,032 crore, the inflows fell to Rs. 6,890 crore in July 2018. Experts are of the view that the stark difference in net inflows is due to contribution from ETFs through Bharat 22 Further Fund Offer. ETFs received Rs. 8,313 crore in June 2018.

Meanwhile, the equity AUM of the MF industry has touched an all time high at Rs.11 lakh crore largely due to mark-to-market gains and inflows in equity funds.

Debt funds, on the other hand, ended the month in red. AMFI data shows that debt funds have recorded redemptions across all categories of schemes. Liquid funds were the most hit with net outflows for the month touching Rs. 31,141 crore. This is in stark contrast to June where liquid funds saw inflows of Rs. 52,104 crore. Similarly, income funds have seen outflows of close to Rs.8000 crore last month.

Vidya Bala, Head, Mutual Fund Research, FundsIndia believes that redemptions in both income and liquid category indicate institutional redemptions in short duration funds. Also, recent volatility has made retail investors vary of investing in debt funds, she added. 

Overall, the MF industry maintained its level above Rs. 23 lakh crore despite heavy redemptions coming from the liquid category. 

Net inflows/outflows July 2018

Source: AMFI