Equity mutual funds (MFs) posted massive outflows in August, for the second straight month. Inflows from systemic investment plans (SIPs) have declined every month since April. The slowdown comes even as record numbers of demat accounts have been opened. Mint explores.
What is happening with equity MFs?
Equity mutual funds saw net outflows of ₹4,000 crore in August, the highest in 10 years. This followed weak inflows in June, and net outflows of ₹2,480 crore in July. Systematic investment plans (SIPs)—which had begun slowing from April—saw net inflows of ₹7,791 crore in August, less than the previous month’s ₹7,831 crore. Debt funds too saw net outflows of ₹3,907 crore, making it a particularly bad month for the mutual fund industry. Gold funds, however, remained a bright spot recording net inflows of ₹908 crore, similar to the flows clocked in July.
What are the reasons for such occurrences?
