MF Data Snapshot: Equity, debt funds record outflows while hybrid scheme shines
A detailed snapshot of how the mutual fund industry performed in the first month of the year.
The mutual fund industry recorded an overall net outflow of ₹35,586.6 crore across all segments in January as compared to positive flows in the previous month. The outflow was led by negative flows in equity and debt-oriented schemes during the month under review.
The assets under management (AUM) of the mutual fund industry dipped in January after hitting record-high levels in the previous months. The total AUM fell to ₹30.5 lakh crore in January-end from ₹31 lakh crore recorded in December-end.
As per the monthly data released by the Association of Mutual Funds of India (AMFI), the growth and equity-oriented schemes under the open-ended schemes registered net outflow of ₹9,253.2 crore in January against ₹10,147 crore outflows in the previous month, even as the benchmark indices surged to record-high levels during the first month of 2021.
All the fund category under the equity-oriented scheme witnessed sell-off in January except the Sectoral/Thematic Fund (₹2,586 crore worth inflows) and the Multi Cap Fund (₹2,858 crore worth inflows).
Flexi Cap Funds witnessed the biggest outflow of ₹5,933.6 crore during the month, followed by Large Cap funds with ₹2,853.4 crore worth outflows. Value/Contra fund, Mid Cap, Small Cap fund, Large & Mid Cap Fund, and Focused Fund registered around or more than ₹1,000 crore worth outflows. The tax-saving Equity-linked savings scheme (ELSS) continued to record a net outflow for the fifth consecutive month at ₹820 crore from last month’s ₹1,274.9 crore outflow.
The chart below shows the equity flows of the last three months i.e., November (₹-12,917.3 crore), December (₹-10,147 crore) and January (₹-9,253.2 crore). The equity-oriented mutual funds witnessed net outflows for the seventh straight month.
The income and debt-oriented schemes dragged the overall AUM of the mutual fund industry by recording outflows of ₹33,408.7 crore in January as compared to ₹13,862.7 crore worth of net inflows in December. Outflows worth ₹45,315 crore recorded in Liquid Fund dragged the debt schemes down. Low Duration Fund, Money Market Fund also garnered outflows for the month. Corporate Bond Fund and Short Duration Fund saw major inflows under the scheme, followed by Medium Duration Fund and Banking & PSU Fund.
Credit Risk Fund started the year 2021 on a positive note as it rebounded from the outflows trend by registering ₹366 crore of inflows in January, after seeing continuous sell-off in the previous few months.
Coming to the Hybrid schemes (mix of equity and debt), the scheme garnered positive flows in January at ₹2,141.7 crore as compared to December’s outflow figure of ₹5,932.2 crore. The scheme was supported by sharp inflows in Arbitrage Fund (₹5,234.8 crore of inflows).
After bouncing back to the inflow trend last month, Gold exchange-traded funds (ETF) flows continued the positive flows as it recorded ₹624.8 crore inflows in January. Other ETFs recorded inflows of ₹6.133 crore for the month. Index funds (inflows of ₹453.7 crore) bounced back to registering inflows after garnering outflows for two previous months.
The chart depicts the total contribution made by systematic investment plans (SIPs) in the last six months. In January 2021, the SIP inflows dipped slightly to ₹8,023 crore as compared to ₹8,418 crore in December 2020.
The total number of SIP folios saw a marginal jump to 3.55 crore from 3.47 crore. The assets under management (AUM) from SIPs rose to ₹3.90 lakh crore in January, down from ₹3.98 lakh crore in the previous month.
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