Equity mutual funds continued to gain traction in May as the category received net inflows of Rs. 10,076 crore (including ELSS). Also, majority of the inflows came in existing funds. Existing funds received gross inflows of Rs. 12,263 crore while NFOs collected Rs. 1,250 crore.
There were four new fund launches in May - Reliance Equity Savings Fund, SBI Equity Saving Fund, HDFC Focused Equity Fund - Plan B and Kotak India Growth Fund Series I which collectively mopped up Rs. 1,250 crore. As a result, the AUM of equity funds touched an all-time high of Rs. 3.65 lakh crore in May.
Gold ETFs
Investors continued to shun Gold ETFs due to its lackluster returns. The category saw net outflows of Rs. 86 crore in May. The AUM of Gold ETFs has fallen to Rs. 6,688 crore in May from Rs. 10,000 crore levels in 2013.
Overseas fund of funds
The category is seeing continuous redemptions. Overseas fund of funds saw net outflows of Rs. 38 crore. The category has come in the limelight recently due to the falling rupee. Overseas fund of funds currently manage Rs. 2,469 crore.
Gilt funds
Gilt funds received net inflows of Rs. 875 crore due to expectations of a rate cut. The RBI cut repo rate by 25 basis points on June 2. There is an inverse relationship between the price of the G-Sec and interest rates. A fall in the interest rate leads to a rise in the bond prices as well as the NAV of the gilt fund and vice-versa. The category has delivered 12% absolute return over a one year period, shows Value Research data.
Debt
Income funds saw net inflows of Rs. 4,205 crore in May. The AUM of income funds swelled to Rs. 5.22 lakh crore. Income funds constitute 43% of the total Rs. 12.03 lakh AUM of the industry.
Liquid funds saw net outflows of Rs. 15,657 crore in May. Distributors said that some money had gone out of liquid funds in May has come back in June again. Liquid funds usually see redemptions during quarter end.
The AUM of the industry crossed the Rs. 12 lakh crore mark again in May. The industry had crossed Rs. 12 lakh crore mark in February.
Net inflows/outflow in May
Source: AMFI
