Net outflows in MF industry continued in September because of some profit booking in equity schemes and quarter ending. This was the third consequent month to see a net outflow. Further, investors are taking a cautious approach by investing in safer funds while keeping adequate cash in hand to survive the crisis.
Expert take
Sunil Subramaniam, MD & CEO, Sundaram MF points out that the MF industry has witnessed reduced outflows in equity funds last month. “Overall, outflows in the industry is largely because of redemption from liquid funds which is a quarter end phenomenon. On the brighter side, there have been good inflows in banking and PSU funds, short duration funds and even floater funds. Besides, due to recent SEBI norms on multi cap funds there is a shift of flows from multi cap to large caps,” said Sunil.
G Pradeepkumar, CEO, Union MF said, “It appears interest in equity mutual fund schemes is seeing a good revival. Mobilisation into open-ended equity schemes in September has been the highest in the current financial year. The number of folios in the industry as a whole and specifically in equity funds has also gone up significantly. On the fixed income side, there appears to be preference for schemes with good credit quality which can offer reasonable returns e.g. banking and PSU Fund, medium duration fund, corporate bond fund etc.”,”
He said that regular investing through SIP route has remained robust. “This is demonstrated by the healthy growth in number of SIP folios as well as by the monthly flows which seems to have stabilized,” he added.
Here are some key highlights of AMFI’s latest monthly inflows data.
Equity schemes
- Overall, equity schemes witnessed net outflows of over Rs.734 crore in September. However, net outflows reduced from Rs.4,000 crore in August
- Multi cap schemes saw highest net outflows of Rs.1,143 crore followed by large cap schemes with net outflows of Rs.576 crore
- Net outflows were also seen in mid cap funds, value fund and ELSS
- Interestingly, the industry saw net inflows in small cap funds and large and mid-cap funds, focused fund and thematic funds
Debt schemes
- Overall, debt category witnessed net outflows of Rs.51,962 crore due to huge redemption in liquid funds
- As in every quarter end, liquid funds witnessed net outflows of Rs.65,951 crore. It was followed by Rs.4,867 crore of net outflow from ultra-short duration fund
- Net outflows were also seen in money market funds, credit risk funds, long duration funds and gilt funds
- Banking and PSU funds, gilt funds, and short duration funds witnessed good inflows from investors
Hybrid schemes
- Overall, hybrid funds witnessed net outflows over Rs.4,200 crore
- Balanced hybrid funds, dynamic asset allocation, arbitrage funds and equity savings also saw outflows
- Only conservative hybrid funds and multi asset allocation funds saw inflows of Rs.53 crore and Rs.37 crore, respectively
SIP trend
- SIP inflows in September were almost the same as last month - Rs.7,788 crore vs Rs.7,791 crore in August
- Meanwhile, SIP folios witnessed a marginal jump to 3.33 crore from 3.30 crore
- Overall, SIP AUM fell by Rs.726 crore to Rs 3.35 lakh crore
Broad trend
- Overall, the MF industry witnessed net outflow of over Rs.52,090 crore
- The total AAUM for September fell to Rs.27.74 lakh crore from Rs.27.78 lakh crore in August
