Guru Gyan
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Guru Gyan

MF Data Snapshot: Equity inflows trend continue in March; debt funds lead overall outflows

The equity schemes continued the inflows trend in the month of March as it recorded the highest level of inflow in a year. However, the mutual fund industry overall recorded a net outflow of over 2.12 lakh crore across all segments, pulled by debt-oriented schemes.

The assets under management (AUM) of the mutual fund industry was dragged down to ₹22.26 lakh crore in March-end as compared to ₹27.23 lakh crore recorded in February-end.

As per data by the Association of Mutual Funds of India (AMFI), the growth and equity-oriented schemes net inflow for the month of March 2020 stood at ₹11,722.7 crore against ₹10,795.8 crore a month ago. The tax saving Equity-linked savings scheme (ELSS) contribution rose to ₹1,551 crore during the month, from ₹871 crore in February.

Multi cap and large-cap funds witnessed a huge inflow in March 2020 of ₹2,268 crore and ₹2,060 respectively.

The chart below shows the equity inflows of three months i.e., January 2020 (₹7,877 crore), February (₹10,795 crore) and March (₹11,722.7 crore). The robust inflow trend continued for equities as stock markets fell sharply during the month, making investors buy in dips.

The income and debt-oriented schemes could not attract investors as the scheme’s total net outflows stood at ₹-194,914 crore in March against ₹-27,939 outflow crore in February. Liquid funds under the scheme saw a net outflow of ₹-110,037 crore versus ₹-43,825 crore outflow month-on-month (MoM).

Huge outflows in the money market, overnight fund, and ultra-short duration fund also pulled the debt schemes down.

Coming to the Hybrid schemes, the scheme witnessed an outflow in March at ₹-36,459 crore after February recorded an outflow of ₹-2,005 crore for the scheme.

After seeing the highest inflows of ₹1,483 crore in February, Gold exchange-traded funds (ETF) registered an outflow of ₹-194 crore in March.

The chart depicts the total contribution made by systematic investment plans (SIPs) in the last six months. In March 2020, the SIP inflows hit a fresh record high of ₹8,640 crore as compared to ₹8,513 crore in February.

The total number of SIP folios jumped to 3.12 crore in March from February’s 3.09 crore SIP accounts via which investors regularly invest in the schemes.

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