Equity mutual funds witnessed an outflow of Rs 4,000 crore in August, making it the second consecutive monthly withdrawal, primarily on profit-booking by investors.
Besides, investors pulled out Rs 3,907 crore from debt mutual funds (MFs) last month after seeing a staggering inflow of Rs 91,392 crore in July, data from the Association of Mutual Funds in India showed on Wednesday.
Overall, the mutual fund industry witnessed a net outflow of Rs 14,553 crore across all segments during the period under review, compared to a net inflow of Rs 89,813 crore in July.
This outflow could be attributed to withdrawals from liquid, overnight, equity and hybrid schemes.
As per the data, outflow from equity and equity-linked open ended schemes was at Rs 3,999.62 crore in August, much higher than Rs 2,480.35 crore in July.
Equity MFs saw their first outflow in over four years in July on profit-booking.
Such scheme attracted Rs 240.55 crore in June, Rs 5,256 crore in May, Rs 6,213 crore in April, Rs 11,723 crore in March, Rs 10,796 crore in February and Rs 7,877 crore in January.
In August this year, except equity linked saving schemes (ELSS), focused fund and sectoral categories, all the other equity categories witnessed net outflow.
This could be largely attributed to investors booking profit given the surge in the equity markets, said Himanshu Srivastava, Associate Director – Manager Research, Morningstar India.
In the equity segment, large cap was the worst hit with an outflow of Rs 1,553 crore, followed by multi-cap ( Rs 1,157 crore), value fund (Rs 780 crore) and mid-cap (Rs 603 crore).
However, sectoral or thematic funds attracted Rs 379 crore, while the same for ELSS was Rs 29 crore and focused funds saw a marginal infusion of just Rs 5 crore.
With equity markets doing well for some time and stable scenario in the fixed income markets, hybrid schemes too witnessed significant net outflows of Rs 4,819 crore, with investors viewing this scenario as a good exit opportunity, he added.
Within the hybrid schemes, balanced hybrid or aggressive hybrid fund, whose mandate is to invest between 65-80 per cent of assets in equities, witnessed a net outflow of Rs 2,355 crore in August.
Otherwise too, this category has been witnessing consistent net outflow for a long time, given the challenging scenario in both equity and debt markets earlier, Srivastava said.
Among fixed-income securities, liquid schemes saw a pull-out of Rs 15,814 crore, overnight funds (Rs 10,298 crore) and gilt funds (Rs 1,122 crore).
Credit risk funds saw an outflow of Rs 554 crore in the period under review, which was lower than Rs 670 crore in July, Rs 1,494 crore in June, Rs 5,173 crore in May and Rs 19,239 crore in April.
Besides, investors are preferring safe haven assets, gold exchange traded funds (ETFs), as such instruments saw an inflow of Rs 908 crore.
The assets under management of mutual fund industry rose to Rs 27.5 lakh crore at August-end from Rs 27.12 lakh crore at July-end.
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