Mutual Fund Flows – May 2021

June 11, 2021

Equity mutual funds saw sharp inflows, an indication that with receding pandemic numbers, people are renewing faith in the markets.

The biggest gainers in the equity category were ETFs, Index funds and Funds investing overseas. Arbitrage funds due to its tax advantage over liquid and ultra short term funds grew by INR 4,521 crs.

The Debt funds have been out of flavour due to lower returns. The biggest loser’s were liquid and overnight funds along with FMPs. The total debt funds outflows were INR 44,512 crs.

For all this and much more please go through our “Mutual Fund Flows – May 2021.” 

Mutual Funds Flows – April 2021

May 13, 2021

Despite a surge in COVID-19 cases, Equity oriented schemes saw net inflows of ₹ 3,437 crore in April as against ₹ 9,115 crore in March. 

Sectoral and thematic funds saw the largest net inflow under the equity category.

ETFs and Fund of funds investing overseas were the flavour of the month.

Arbitrage funds were the biggest gainers among the Hybrid category of schemes.

High liquidity in the financial markets led to large inflows in liquid and overnight funds. Money market funds also saw good flows. 

For this and much more please read through our note.

Mutual Fund Flows – March 2021

April 10, 2021

The Financial Year 2021 ended on a better note than expected for the Mutual Fund Industry with an increase in average AUM of 30.20% on a year-on-year basis!

Redemptions were made by corporates and banks in March 2021 leading to a reduction in average AUM of Mutual Fund industry by 0.4% for the month. Apart from payments of advance tax, March is an end of the financial year when institutions tend to book profits to show it on their balance sheets. Earlier credit risk funds were considered as an investment option to get that extra return. This avenue dampened due to the crisis in the economy, decrease in credit ratings and fear of defaults. A lot of money from that segment shifted to schemes like corporate bond funds. Floating rate funds also saw huge inflows as markets feared reversal of interest rates and since these schemes invest in instruments linked to interest rate movement appeared lucrative.

Equity oriented schemes however showed positive inflows of around 9K crores after net outflows for straight eight months. In spite of net out flow of 25245.95 crores from equity-oriented schemes due to the pandemic, job losses and salary cuts an overall growth of 51.13% was witnessed in FY 2021 due to increase in market capitalisation and fresh inflows majorly from retail investors and FIIs. 
For a detailed analysis please refer to our complete report below:

Industry Wise AAUM Analysis

April 8, 2021

With a plethora of challenges like the pandemic, worried investor sentiments and tougher regulations from SEBI, the Mutual Fund Industry showed the will and perseverance to grow.

Shifting a major chunk of the investors to online portals in limited time and making sure that their investments were made on time, were some of the remarkable work done during lockdown.

Now its time for them to look back at the challenges they faced and the AUM they generated!

Mutual Fund Flows – February 2021

March 10, 2021

The Average asset under management (AAUM) of the domestic mutual fund industry has increased by 1.42 per cent on a monthly basis to INR 32.29 lakh crs for the month of February 2021.

February 2021 became the eighth month when the equity-dedicated funds witnessed a net outflow. These outflows were to the tune of  INR 10,468 crore in February 2021 as against an outflow of  INR 9,253 crore in the preceding month.

Inflows via the systematic investment plan (SIP) went through a sharp decline.

Liquid and Money Market Funds were the only two categories that saw significant inflows in the debt category, whereas Short Duration and Corporate Bond Funds witnessed major outflows.

For all these and more such interesting snippets please go through our “Mutual Fund Flows-February 2021”. 

Mutual Fund Flows – January 2021

February 10, 2021

Equity mutual funds continued to witness outflows for the seventh straight month even as the benchmark indices scaled new peaks. However, investors infused Rs 2,142 crore in Hybrid schemes.

SIP inflow in December dipped to Rs 8,023 crore from Rs 8,418 crore in the previous month. The total number of SIP folios saw a marginal jump to 3.55 crore from 3.47 crore.

Within the Debt schemes, Liquid funds logged maximum outflow to the tune of Rs 45,316 crore and Low Duration funds saw outflows of Rs 8,041 crore.

Other categories, such as Short-Duration funds, Corporate Bond funds and Banking and PSU funds, witnessed net inflows. Credit-Risk funds saw net inflows of Rs 366 crore in January.

For all these details and much more please refer to our detailed report attached.

Mutual Fund Flows – December 2020

January 12, 2021

The Mutual Fund industry ended the year 2020 with an average AUM of 30.96 Lakh crores in the month of December.

Soaring equity markets provided an opportunity for a lot of investors to book profits which was clearly visible from heavy redemptions across equity mutual fund categories. However sectoral and thematic funds still lured interest of investors with a positive inflow.

Anticipation of rate hike in credit policy due to heavy liquidity and fear of inflationary pressure had led to increase in yields and as a result decrease in returns in the first half of December. As a result, categories like Ultra Short Duration, Low duration and money markets faced heavy redemptions.

Liquid and Overnight funds saw inflows as these categories are used by companies to park their short-term money.

Sovereign Gold Bonds

January 8, 2021

Add the sheen of Gold to your Investments with the Sovereign Gold Bond Funds.

With the Government of India’s Sovereign Gold Bonds Scheme you can earn an assured interest rate eliminating risk and cost of storage.

Benefits of investing in SGBs:

  • Attractive Interest with asset appreciation opportunity
  • Redemption linked to Gold Price
  • Elimination of risk and cost of storage
  • Exempt from Capital gains tax, if held till maturity

Mutual Fund Flows – November 2020

December 10, 2020

November month saw a new milestone for MF industry with Rs. 30 Lakh Crore net assets under management.

Indian equity markets saw a surge due to highest ever monthly inflows of FII in Indian markets and better than expected economic data. This surge was treated as an opportunity to book profits and heavy redemptions were seen in equity mutual fund schemes across categories.

In debt, money flowed from low duration categories to higher duration categories for better returns through accruals in a low interest rate scenario.

Credit Policy Update

December 4, 2020

The MPC of the Reserve Bank of India unanimously voted to keep the key rates unchanged and maintained an accommodative stance amid elevated inflation constraints. Find below the key highlights and implications of the policy on 4th December 2020.