MF Data Snapshot: Equity inflows halve in April; liquid funds support amid lockdown
The equity schemes inflows in the month of April halved amid the lockdown due to the ongoing COVID-19 crisis. However, the mutual fund industry overall recorded a net inflow of nearly ₹46,000 crore across all segments as compared to a net outflow of ₹2.12 lakh crore in March.
The assets under management (AUM) of the mutual fund industry jumped to ₹23.93 lakh crore in April-end from ₹22.26 lakh crore recorded in March-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 April 2020 halved to ₹ 6,212.9 crore against ₹11,722.7 crore a month ago. The tax saving Equity-linked savings scheme (ELSS) contribution declined to ₹752 crore during the month, from ₹1,551 crore in March.
Large cap and multi cap funds under equity scheme witnessed an inflow in April 2020 of ₹1,833 crore and ₹1,463 respectively.
The chart below shows the equity inflows of three months i.e., February (₹10,795 crore), March (₹11,722 crore) and April (₹6,212.9 crore). The inflow trend continued for equities, however, the inflows declined nearly 47% in the first month of the current financial year.
The income and debt-oriented schemes garnered total net inflows of ₹43,431.5 crore in April against ₹-194,914 outflow crore in March. Liquid fund supported the debt funds as it witnessed net inflow of ₹68,848 crore versus ₹-110,037 crore outflow month-on-month (MoM).
Credit Risk fund saw huge outflows of ₹-19,239 crore in the month post the Franklin Templeton fiasco as investors pulled out money from risky schemes.
Coming to the Hybrid schemes (mix of equity and debt), the scheme witnessed an inflow in April at ₹4,204.7 crore after March recorded an outflow of ₹-36,459 crore for the scheme.
After the outflows of ₹-194 crore in March, Gold exchange-traded funds (ETF) were back with registering inflows of ₹730.9 crore in April.
The chart depicts the total contribution made by systematic investment plans (SIPs) in the last six months. In April 2020, the SIP inflows plunged a bit to ₹8,376 crore as compared to ₹8,640 crore in March.
The total number of SIP folios/accounts stands at 3.14 crore currently via which investors regularly invest in the mutual fund schemes.
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