The financial year 2021 ended on a positive for the Rs.32 lakh crore MF industry. In March 2021, the MF industry has recorded gross monthly SIP inflows of close to Rs.9200 crore. In addition, after witnessing net outflows for nine consecutive months, equity funds have finally seen net inflows of Rs.9,115 crore last month.
NS Venkatesh, AMFI, CEO said, “On debt side, quarter end phenomenon has played out with corporates redeeming their allocations to fulfil their tax mandates. However, corporate bond fund, dynamic bond and floater fund have seen positive flows owing to investors preferring to take advantage of the flexibility offered by the duration strategy, and RBI preferring accommodative stance to help pursue growth over inflation. On the retail equity-oriented schemes, arbitrage and dynamic asset allocation strategy along with mid-cap have witnessed maximum flows, reflective of smart distribution and diversification of their long-term savings.”
Let us look at some key numbers of the MF industry in March 2021:
Equity schemes
- Equity schemes have witnessed net inflows of Rs.9,115 crore in March
- All equity funds except multi cap funds and value funds have registered net inflows last month
- Sectoral funds have seen the highest net inflows of Rs.2,009 crore followed by ELSS with net inflow of Rs.1,552 crore and mid cap funds with net inflow of Rs.1,502 crore
- Flexi cap funds have witnessed net inflows of Rs.1,386 crore while focused fund witnessed net inflows of Rs.1,026 crore
- Number of folios in equity funds has risen by 9.79 lakh to 6.57 crore in March
Debt schemes
- Debt funds have witnessed net outflows of Rs.52,528 crore led by net outflows in liquid funds of Rs.19,383 crore followed by low duration funds with net outflows of Rs.15,847 crore
- Short duration funds, money market funds and ultra short duration funds have also witnessed net outflows of Rs.9,025 crore, Rs.7,037 crore and Rs.6,731 crore, respectively
- On the other hand, the industry has witnessed net inflows in overnight funds, floater funds and corporate bond funds
Hybrid schemes
- Hybrid funds have witnessed net inflows across categories
- Arbitrage funds have recorded net inflows of Rs.3,087 crore followed by dynamic asset allocation funds with net inflows of Rs.2,118 crore
- Similarly, balanced hybrid funds have witnessed net inflows of Rs.2,178 crore
SIP trend
- Gross monthly inflows through SIP is now Rs.9,182 crore. It has increased from Rs.7,528 crore inflows in February and Rs.8,023 crore in January
- In addition, SIP folios has grown to 3.72 crore in March from 3.63 crore in February
- Overall, SIP AUM has increased to Rs.4.27 lakh crore in March as against Rs.4.21 lakh crore in February
Broad trend
- Overall, the MF industry has witnessed net outflow of over Rs.29,745 crore last month
- The total industry AAUM has declined marginally to Rs.32.17 lakh crore in March from Rs.32.29 lakh crore in February largely due to outflows from liquid funds
