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Equity inflows dropped by 50% from Rs. 6,480 crore in April 2023 to Rs. 3,240 crore in May 2023 as per AMFI data.
The decline can be primarily attributed to profit booking, with the largest impact observed in large-cap funds (amounting to Rs. 1,362 crore), followed by focused funds (amounting to Rs. 944 crore).
Sharing his views on this, Manish Mehta, National Head and Sales, Marketing & Digital Business, Kotak MF said, “Profit booking in a rising market along with probable expenses towards vacation, education could have led to lower investments in mutual funds in May."
However, small cap funds partially reduced the impact of these outflows by infusing Rs. 3,283 crore, the highest across equity categories. “Given the recent correction, investors are keen to participate in the upward momentum that is expected to take place in small cap stocks”, shared NS Venkatesh, CEO, AMFI in a conference call with media.
Mid cap and large & mid cap funds also mitigated the outflows further with inflows of Rs.1,196 crore and Rs. 1,133 crore, respectively.
Overall, the industry inflows dipped from Rs. 1.24 lakh crore in April 2023 to Rs. 59,879 crore in May 2023. A category-wise review shows that apart from hybrid funds, all other categories also reported a decline.
|
Open-ended schemes |
Net flows (April) |
Net flows (May) |
Change |
Sub-categories with highest inflows in May |
Sub-categories with highest outflows in May |
|
Debt Oriented |
1,06,677 |
45,959 |
-60,718 |
* Liquid funds - 45,234 * Money market funds - 8,731 |
* Overnight funds - (18,910) * Floater funds - (2,378) |
|
Hybrid |
3,317 |
6,093 |
2,776 |
* Arbitrage funds - 6,640 * Multi asset allocation funds - 738 |
* Balanced hybrid funds/ aggressive hybrid funds - (997) * Dynamic asset allocation/ balanced advantage fund - (757) |
|
Index funds |
147 |
109 |
-38 |
- |
- |
|
Gold / other ETFs |
6,915 |
4,627 |
-2,288 |
- |
- |
* Figures in crore
New Fund Offerings (NFOs)
The MF industry launched four open-ended schemes in May 2023 namely quant Business Cycle Fund, WhiteOak Capital Multi Asset Allocation Fund, SBI S&P BSE Sensex Index Fund and UTI Nifty 500 Value 50 Index Fund. These funds collectively mobilised Rs. 380 crore.
SIPs
The total SIP AUM stood at Rs. 7.53 lakh crore as on May 2023.
Investors made monthly SIP contribution of Rs. 14,749 crore and registered 24.70 lakh SIPs thereby taking the total SIP count to 6.53 crore.
Commenting on these figures, Venkatesh said, “Investors are choosing to invest in categories where they find value. This month, we observed the highest AUM through SIPs with highest ever SIP contribution of Rs. 14,748.68 crore and a surge in new SIP registrations. These figures indicate that retail investors have maintained their confidence in SIP as their preferred investment instrument for wealth creation”
Overall, the average AUM of the MF industry stood at Rs. 42.95 lakh crore.
