MF Update : Equity inflows rises despite volatility
During the month of May 2018, the mutual fund industry has witnessed net inflows of Rs. 16,710 crore in equity funds which include pure equity funds, balanced funds, ELSS and equity ETFs. It represents an increase of 11 per cent from Rs. 15,000 crore in April 2018. With this, the total equity AUM has reached Rs. 10 lakh crore declining from Rs. 10.60 lakh crore in April owing to mark to market loss.
AMFI data shows that, during the month pure equity funds received inflows of Rs. 10,444 crore. This rise in the inflows of pure equity funds is owing to the investment by retail investors through systematic investment plans.
On the other side, balanced funds also recorded inflows of Rs. 2,666 crore where inflows in ELSS and ETFs stood at Rs. 906 crore and Rs. 2,694 crore, respectively during the month.
From the last month onwards, AMFI has started disclosing inflows and assets of arbitrage funds separately. The mutual fund industry has collected Rs. 720 crore through arbitrage funds. Large corporates and HNI’s usually invest in the arbitrage funds for the taxation purpose. This separate disclosure will help investors get a better picture of the industry.
On the contrary, all the debt fund categories, that is, income, liquid and Gilt funds saw outflows of Rs. 20,407 crore, Rs. 46,724 crore and Rs. 428 crore, respectively during the month. The key reason behind can be the redemptions from corporates and institutions.
Overall, the mutual fund industry saw outflows of Rs. 50,000 crore while the total AUM stood at Rs. 22.60 lakh crore for the month of May 2018.