Mutual Funds: June, despite the market slump, equity MFs receive Rs 15,500 crore inflows

Date:

Share post:


Mumbai: Retail investorsContinued confidence in equity Mutual fundsDespite the sharp fall of both Indian and international markets, there was no shortage of activity last month. EquitySchemes witness net Inflows of ₹15,498 crore in the month, shows data from the Association of Mutual Funds in India. This, though, was lower than ₹18,529 crore inflows in May.

Debt schemes, however, posted net outflow of ₹92,247 crore in June as investors took MoneyWe expect further rate increases and we are leaving. This resulted in the industry’s total assets under management (AUM) declining to ₹36.98 lakh crore in the month against ₹37.37 lakh crore during May.

Akhil Chakravedi, chief executive officer at Akhil Chaturvedi said, “Net equity inflow remained robust despite relentless selling of FPIs [foreign portfolio investors] and market correction during this year so far. This is reflecting a feeling of maturity in investors’ mindset.”

Mutual Fund

Flows through systematic investment plans fell marginally to ₹12,276 crore from ₹12,286 crore in May.

Flexicap funds, which give flexibility to fund managers to invest across the entire spectrum of the market without any restrictions saw the highest collection of ₹2,512 crore in June. This was followed by thematic funds that got ₹2,151 crore and large-cap funds with inflows of ₹1,730 crore. Low-cost passive funds, which include both equity and debt funds, saw inflows of ₹7,301 crore.

Dynamic asset allocation funds, which invest in a mix of debt and equity based on market valuations, saw inflows of ₹1,799 crore. Aggressive hybrid funds, which allocate 65-75% of their portfolio to equities, saw inflows of ₹1,130 crore. Arbitrage funds saw outflows of ₹5,593 crore.

Fearing rate increases would lead to losses (MTM), investors pulled money out of debt-oriented funds.

“An uncertain macro-environment, driven by expectations around an increase rate cycle, higher commodity price, and slowdown of growth, have likely led investors to steer clear of debt funds,” Kavitha Krishnan – senior analyst – manager research, Morningstar India.

She added that single-digit returns and rising bond yields have likely led investors to choose other investment avenues over debt funds.

Outflows were largely driven by the overnight funds, liquid funds and ultra-short-term funds with outflows of ₹20,668 crore, ₹15,782 crore, and ₹10,058 crore, respectively.

Corporate bond funds saw outflows of ₹9,086 crore, followed by money market funds with ₹8,126 crore outflows and floater funds with ₹7,078 crore outflows.

Gold ETFs saw inflows of ₹135 crore as investors bought the yellow metal as a hedge against rising inflation.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img

Related articles

The Benefits of a Creative Subscription with Envato Elements

If you’re looking to find and use royalty-free images and other creative resources, it can be tough to...

Get an Additional ₹100 Cashback When You Pay with Domino’s Digital Wallet Partners

How does ₹100 cashback sound? Find out more about the additional cashback you can get when you pay...

Get Unlimited Access to DataCamp’s Library of Online Courses

DataCamp subscriptions enable access to over 300 courses, as well as projects, assessments, and additional content. Whether you're...

Why You Should Buy from DaMENSCH: The Best in Quality, Service, and Value

Buying products online can be dangerous; you never know if you’re getting an authentic product, or one that’s...