Equity fund inflows fell sharply in June, shows Amfi data

Economic disruptions caused by the Covid pandemic seem to have started impacting the mutual fund industry. Extended lockdowns, job loss and pay cuts have adversely impacted the inflows into various mutual fund categories, shows data from Association o mutual funds in India or Amfi.

Net equity inflows into mutual funds fell sharply in June to around Rs 240.55 crore from Rs 5,256.52 crore in May, reveals the latest data released by Amfi. Large cap funds and multi cap funds, the highest grossing categories in May, saw outflows in June.

Multi cap funds saw outflows of Rs 777.60 crore in June. Similarly, large cap funds witnessed outflows of Rs Rs 212.78 crore. Value funds also saw an outflow of Rs 136.44 crore. Mid cap inflows also slowed down: the inflows in the mid cap category fell from Rs 279.69 crore in May to Rs 36.70 crore in June.

Small cap funds bucked the trend. ELSS and small cap categories witnessed the highest inflows worth Rs 586.67 crore and Rs 249.20 crore in June. There is a minor fall in small cap inflows as well.

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equity inflows

Hybrid funds continued to bleed in June as well. All the hybrid categories except for arbitrage funds witnessed massive outflows. See table:

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hybrid inflows

Debt inflows were also hit badly this month. The total inflows into various debt mutual fund categories stood at Rs 2,861.68 crore, compared to Rs 63,665.54 crore in May. However, most debt mutual fund categories saw inflows, except liquid funds, credit risk funds and medium duration funds.

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debt inflows

“Equity inflows have slowed down as many investors are waiting for clarity on their own future cash flows before investing further. A portion of investors have also been caught by surprise over the sharp equity rally and are still waiting for lower levels to enter back. Future equity flows to a large extent will depend on how soon the confidence on future cash flows for individuals returns back to normal.”- Arun Kumar, Head of Research, Funds India.


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