According to data from the Association of Mutual Funds of India (AMFI), net inflows into equity funds for August stood at Rs 7,734 crore, lower than the Rs 8,512 crore in July and Rs 8,794 crore in June 2018. The drop from May inflows is extremely steep. Equity scheme inflows in May 2018 were Rs 10,444 crore, meaning that fund flows have dropped about 25% from then.
|Inflows (Rs Cr)||10,444||8,794||8,512||7,734|
The ELSS (tax saving funds) category recorded inflows of Rs 641 crore, lower than the Rs 940 crores in July. It was also lower than the numbers for May and June
|Inflows (Rs Cr)||906||866||940||641|
Liquid and money market funds witnessed huge net inflows of Rs 1,71,108 crore compared to outflows of Rs. 31,141 crores in July. However liquid funds are used by large institutions for their short term treasury requirements and inflows in them tend to be volatile.
Other mutual fund categories that saw significant outflows in July include income funds, gold ETFs and Gilt schemes. These categories saw outflows of Rs 6,520 crore, Rs 45 crore and Rs 283 crore. This may have been a result of poor debt fund returns in 2018 due to a series of interest rate hikes. The gold price has also been stagnant for much of 2018.
The huge inflows into liquid schemes caused the industry AUM to increase. This rose from Rs 23,05,538 crore in July 2018 to Rs 25,20,430 crore in August 2018.
Date: 07 SEP 2018