Equity funds see Rs 1059 crore net inflows in December

Four new equity funds were launched in December which together mopped up Rs. 849 crore, shows AMFI data.

Thanks to new fund launches, equity funds saw net inflows of Rs. 1059 crore in December for the second consecutive month.

There were four new equity NFOs in December - ICICI Prudential Value Fund - Series 2, Reliance Close Ended Equity Fund - Series A, Birla Sun Life Banking and Financial Services Fund and Pramerica Midcap Opportunities Fund which together mopped up Rs. 849 crore.

The assets under management of the industry fell 7% to Rs. 8.25 lakh crore in December from Rs. 8.89 lakh crore in November largely on account of outflows from liquid and income funds.

Debt

Corporates and banks withdrew their investments as a result of which  liquid funds witnessed net outflows of Rs. 66313 crore. Income funds also saw net outflows of Rs. 8954 crore. The assets under management of income funds fell from Rs. 4.31 lakh crore to Rs. 4.24 lakh crore in December. The industry launched 74 FMPs which together collected Rs. 6776 crore.

Gilt funds also witnessed net outflows of Rs. 519 crore as RBI hiked the repo rate by 25 basis points to tame inflation. A fall in interest rates benefits gilts funds.

ETFs

Gold ETFs continued to witness outflows in December on account of the dismal returns from gold funds. Investors pulled out nearly Rs. 157 crore from Gold ETFs. According to Value Research, the Gold fund category has delivered – 8 % return over a one year period.

Net inflow/outflow in December