MF Data Snapshot: Equity inflows at 11-month high in Feb while debt fund outflows drag
Even though the equity inflows in the month of February touched an 11-month high, the mutual fund industry as a whole witnessed a subdued month with most of the schemes back to recording net outflows against high inflows recorded last month.
The total assets under management (AUM) of the mutual fund industry dropped over 2% to ₹27.23 lakh crore in February against ₹27.86 lakh crore in January.
As per data by the Association of Mutual Funds of India (AMFI), the growth and equity-oriented schemes net inflow for the month of February 2020 stood at ₹ 10,795.8 crore against ₹7,877.4 crore a month ago. The tax saving Equity-linked savings scheme (ELSS) contribution fell to ₹871 crore during the month, from ₹931 crore in January.
Sectoral/thematic funds witnessed a huge inflow in February of ₹1,927 crore as compared to ₹3.8 crore last month.
The chart below shows the equity inflows of three months i.e., December (₹4,499 crore), January 2020 (₹7,877 crore) and February (₹10,795 crore). The robust inflow trend continued for equities.
The income and debt-oriented schemes were back to registering outflows with February’s total net outflow at ₹-27,939 crore after garnering a strong inflow of ₹1.09 lakh crore in January. Liquid fund saw a net outflow of ₹-43,825 crore against ₹59,682 crore inflow month-on-month (MoM).
Coming to the Hybrid schemes, the scheme witnessed an outflow in February at ₹2,005 crore after January recorded an inflow of ₹1,259 crore for the scheme.
Investors continued to pump in money in the Gold exchange-traded funds (ETF) despite a sharp surge in the safe-haven asset as the inflows for February jumped to ₹1,483 crore from ₹202 crore in the previous month.
The chart depicts the total contribution made by systematic investment plans (SIPs) in the last six months. In February 2020, the SIP contribution came slightly lower at ₹8,513 crore in February as compared to ₹8,532 crore record high in January.
Indian Mutual Funds have currently about 3.09 crore (30.9 million) SIP accounts via which investors regularly invest in the schemes.
Overall, the total net outflow across all segments stood at ₹-1,985 crore in February versus ₹1.20 lakh crore inflows witnessed in January.
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