Net inflows into equity schemes, excluding arbitrage funds for December fell to Rs 5,765 crore, a drop of 24% from their level in November. They have more than halved from a peak of Rs 11,422 crore in October 2018. Net inflows in ELSS funds were 845 crores. These muted funds come on the back of a tough year for equity markets. The 1 year Nifty 50 Total Return stood at just 3.47% as on 8th Jan 2018. The Nifty Midcap 100 has fared even worse with a 1 year return of -17%. The Nifty Smallcap 250 is down a whopping 28.54% over the past year. The sole bright spot was the flows of Rs 10,878 crore in ‘Other ETFs.’ This is mostly on account of subscriptions to the CPSE ETF whose second tranche opened for subscription in December 2018.
Debt and Hybrid Funds also saw weak inflows and in many cases, net outflows. Balanced Funds saw an inflow of just 45 crore while Gilt funds saw inflows of just Rs 6 crores in December 2018. Net outflows to the tune of Rs 3,407 crore were seen from Income Funds and Rs 1,48,906 crore from liquid/money market funds. The combined effect of these outflows more than offset marginal inflows into other fund categories reducing the total industry AUM (Assets under Management) by Rs 1,36,951 crore to 22.85 lakh crore.
The collapse has been strongest in balanced funds which were previously the subject of aggressive (and misleading) sales pitches as avenues for getting regular income.
|Month||Balanced Funds (Net Inflows in Rs Crore)|
The following is a comparison of inflows and outflows in major equity fund categories since April 2018*:
|Month||Equity Fund Inflows (excl. Arbitrage Funds)||ELSS – Equity inflows|
(All amounts in Rs. crore)
*Source: AMFI monthly data