MFs equity inflow plunge to a new low in June

Inflows into the equity schemes of mutual funds plunged to a new low of ₹241 crore in June against ₹5,256 crore logged in the same period last year due to huge redemption by investors.

Multi- and large-cap funds logged an outflow of ₹778 crore and ₹213 crore last month against an inflow of ₹759 crore and ₹1,556 crore in May.

The Equity Linked Saving Schemes and Focused funds witnessed an inflow of ₹587 crore and ₹317 crore but it was much lower than ₹712 crore and ₹670 crore logged in May. Small cap fund registered an inflow of ₹249 core (₹293 crore).

Investments through monthly systematic investment plan fell below the ₹8,000-crore mark to ₹7,927 crore as against ₹8,123 crore logged in May. The SIP asset under management jumped to ₹3.84 lakh crore against ₹3.20 lakh crore.

Strained cash flow

G Pradeepkumar, CEO, Union AMC, said that the fall in monthly SIP contribution is worrying, but it was expected given the strain on cash flows and incomes experienced by many investors on account of the Covid-19.

The overall asset under management (AUM) of mutual funds gained 4 per cent to ₹25.48 lakh crore against ₹24.54 lakh crore recorded in May, largely due to mark-to-market gain. Overall inflow into mutual funds last month plunged 90 per cent to ₹7,265 crore (₹70,800 crore).

Debt fund inflow slipped to ₹2,861 crore (₹63,665 crore) with liquid funds seeing an outflow of ₹44,226 crore against an inflow of ₹61,670 crore in May. Overall debt fund assets increased to ₹11.63 lakh crore (₹11.50 lakh crore).

NS Venkatesh, Chief Executive, AMFI, said that reducing interest rates, gradual unlocking of economic activity has seen renewed buoyancy in markets leading to mutual fund AUMs crossing ₹25 lakh crore-mark for the first in this fiscal.