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Sunday, September 27, 2020

June equity MF inflows fall 95% on cash flow woes, profit booking

Figures released by the Association of Mutual Funds of India (Amfi) show that MFs reported equity mobilisation of Rs 13,760 crore and redemptions of Rs 13,520 crore in June.

By: ENS Economic Bureau | New Delhi | July 9, 2020 3:12:16 am
The total new inflows into debt MF schemes also declined to Rs 2,861 crore in June from Rs 63,665.54 crore in May. In the debt segment, there was an outflow of Rs 44,226 crore in June. (File)

Inflows into equity schemes of mutual funds (MFs) plummeted 95 per cent in June as investors held back investment plans and booked profits amid cash flow concerns in the wake of the continuing lockdown in the country. Mutual funds saw a net inflow of only Rs 240.5 crore in June, as against Rs 5,256.52 crore in May even as the benchmark Sensex gained 2,491 points during the month on the back of foreign portfolio inflows.

Figures released by the Association of Mutual Funds of India (Amfi) show that MFs reported equity mobilisation of Rs 13,760 crore and redemptions of Rs 13,520 crore in June.

The total new inflows into debt MF schemes also declined to Rs 2,861 crore in June from Rs 63,665.54 crore in May. In the debt segment, there was an outflow of Rs 44,226 crore in June.

Arun Kumar, head of research, FundsIndia.com, said, “Equity inflows have slowed down as many investors are waiting for clarity on their own future cash flows before investing further.”

Another analyst said it is possible that some investors might have sold their MF equity portfolio when the Sensex bounced back in June.

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