Gross sales of equity schemes clocked Rs. 12,072 crore in June.
Retail investors seem to be back in action. Thanks to reduced redemptions and fresh inflows in existing as well as new schemes, equity funds saw a record net inflow of Rs. 7,309 crore in June.
Balanced funds, which invest a portion of money in equities, also saw net inflows of Rs. 185 crore.
There were four new equity fund launches in
June - Edelweiss Arbitrage Fund. JPMorgan India Top 100, L&T Arbitrage
Opportunities Fund and Union KBC Small and Midcap Fund which collectively
mopped up Rs. 350 crore.
Among the closed end fund launches, Birla Sun
Life Emerging Leaders Fund - Series 2, lClCl Prudential Growth Fund - Series 1 and
Sundaram Top 100 Series I and II together collected 764 crore.
“Those who had invested during 2007-2010 did
not make any money in mutual funds. Now that the market is rallying investors
confidence in mutual funds is back,” said G Pradeepkumar, CEO, Union KBC Mutual
Fund.
The recent rally in the market is also
helping the industry attract fresh investments in equity funds. The Indian
markets are up 20% YTD. In June, the gross sales in equity funds stood at Rs. 12,072
crore while the redemptions were to the tune of Rs. 4,763 crore which resulted
in a net inflow of Rs. 7,309 crore.
“Money has come in from large private banks,
family offices and IFAs in equity funds. We expect to see good traction in
equity funds for the next six to eight months,” said D P Singh, Executive
Director, CMO- Domestic Business, SBI Mutual Fund.
Thanks to the 5% rally in market and lesser
redemptions in June, the AUM of equity funds increased to Rs. 2.10 lakh crore
from Rs. 1.89 lakh crore in May.
Net inflows/outflows in June
|
Category |
Net inflow/outflow |
AUM |
|
Income |
1307 |
478982 |
|
Equity |
7309 |
210794 |
|
Balanced |
185 |
15,914 |
|
Liquid |
-67697 |
215995 |
|
Gilt |
-211 |
5,492 |
|
ELSS |
-156 |
30,230 |
|
Gold ETF |
-227 |
7,943 |
|
Other ETF |
-133 |
5,048 |
|
FOF investing overseas |
-103 |
3226 |
|
Total |
-59726 |
973624 |
|
Source: AMFI. AUM as on June 2014. In Rs. cr |
||
Except income, equity and balanced fund
category, all other categories saw outflows.
The industry’s AUM fell below the Rs. 10 lakh
crore mark in June, thanks to net outflow of Rs. 67,697 crore from liquid
funds.
The industry’s AUM fell 4% from a record high of Rs. 10.11 lakh crore in May to Rs. 9.74 lakh crore in June.
