Equity funds attract Rs. 5,217 crore net inflows in August

The industry has received net inflows of Rs. 26,001 crore YTD as on August 2014.

Investors continued to remain bullish on equities as key indices scaled new high. After receiving record net inflows of Rs. 10,815 crore in July, equity funds clocked positive net inflows of Rs. 5,217 crore in August. The Sensex crossed 27,000 level last week.

There were a total of seven new equity fund launches in August which collectively mopped up Rs. 1,229 crore. Among the open end equity funds, Axis Enhanced Arbritage Fund, DWS Arbitrage Fund, L&T Business Cycles Fund and Reliance Japan Equity Fund together mopped up Rs. 532 crore while close end equity funds - Birla Sun Life Emerging Leaders Fund - Series 4, ICICI Prudential Growth Fund - Series 2 and Reliance Capital Builder Fund - Series A mopped up Rs. 697 crore.

A large part of the inflows came in existing equity funds which received Rs. 8,598 crore. Comparatively in August, existing equity schemes received inflows of Rs. 16,908 crore.

Income funds

Income funds continued to see outflows for the second consecutive month. After seeing net outflows of Rs. 10,080 crore in July, the category saw outflow of Rs. 12,696 crore in August. The YTD net outflows from income funds stood at Rs. 21,300 crore.

Overseas fund of funds

Overseas fund of funds saw net outflows of Rs. 17 crore. DSP BlackRock Global Allocation Fund which was launched in August mopped up Rs. 51 crore. There are 31 international funds in the industry which manage Rs. 3,180 crore.

All in all, the industry saw net outflows of Rs. 13,035 crore largely due to outflows from income and liquid funds. The industry’s AUM went up marginally by 1% from Rs. 10.06 lakh crore in July to Rs. 10.12 lakh crore in August.

Net inflow/outflow in August

 It remains to be seen if equity funds continue to see traction in September as well.