Mutual Fund equity outflow continues for 7th month in a row

Suresh P Iyengar Mumbai | Updated on February 09, 2021

Almost all the equity funds categories, except for mid-cap and thematic funds logged outflows.

The outflow from equity mutual funds continued for the seventh month in a row, registering net outflow of ₹9,253 crore in January.

Almost all the equity funds categories, except for mid-cap and thematic funds logged an outflow with flexi cap recording the highest outflow of ₹5,934 crore followed by large-cap and value funds logging an outflow of ₹2,853 crore and ₹1,640 crore.

The outflow from flexi-cap was largely due to the waiver of exit load by mutual funds as most of them converted their multi-cap fund to flexi-cap, which led to a change in basic attributes of the scheme.

As per SEBI norms, fund houses have to provide load free exit if the scheme’s attributes are changed. Aapart from this, the sharp run-up in the market made investors book profit on their long-term investment.

On the contrary, mid-cap and thematic funds registered an inflow of ₹2,857 crore and ₹2,586 crore, respectively.

The debt funds registered an outflow of ₹33,409 crore with liquid fund alone recording an outflow of ₹45,316 crore.

Overall, the asset under management of mutual funds was down at ₹30.50 lakh crore in January against ₹31.02 lakh crore logged in December.


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Published on February 09, 2021
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