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Despite Sensex rising 1K pts in August, equity MF schemes see outflow of Rs 4,000 crore

According to the latest data from the Association of Mutual Funds in India, large cap schemes witnessed the highest outflows to the tune of Rs 1,553 crore, followed by multi-cap fund that posted outflows of Rs 1,157 crore.

By: ENS Economic Bureau | Mumbai |
September 10, 2020 3:15:16 am
senex, nifty, bse sensex, nse nifty, markets, markets today, business news, indian expressIn the previous session, Sensex ended 304.38 points or 0.77 per cent higher at 39,878.95, while Nifty jumped 76.45 points or 0.66 per cent to close at 11,738.85.

Despite the Sensex rising over 1,000 points in August, equity mutual fund schemes registered higher outflows of Rs 4,000 crore during the month as against an outflow of Rs 2,480 crore in July

According to the latest data from the Association of Mutual Funds in India, large cap schemes witnessed the highest outflows to the tune of Rs 1,553 crore, followed by multi-cap fund that posted outflows of Rs 1,157 crore. Experts attributed the outflows to profit booking after the Sensex rose by 2.71 per cent in August.

Overall, the MF industry registered outflows of Rs 14,533 crore in August. Total assets under management (AUM) stood at Rs 27.49 lakh crore as on August 31 as against Rs 27.11 lakh crore in July. SIP contribution in August was Rs 7791.63 crore. The total assets under management of equity schemes were at Rs 7.69 lakh crore and debt schemes at Rs 12.60 lakh crore. Outflows from debt schemes were at Rs 3,907 crore. The liquid funds category was the worst hit and registered outflows of Rs 15,814 crore in August while overnight funds saw outflows of Rs 10,298 crore.

NS Venkatesh, chief executive, AMFI, said: “Despite persistent volatility and challenging economic scenario, retail Investors continue to exhibit mature investment behavior, reflected from record high retail AUMs, continued rise in SIP AUMs, SIP folios and significantly higher quantum of flows towards multi asset allocation schemes during the month.”

On the debt side, investors continue to repose trust, as seen from positive flows in money market, ultra-short and low duration funds. Overall, MF industry continues to see steady rise, on a month-on-month and year-on-year AUMs on a consolidated basis.”

According to Santosh Kumar Singh, head of research, Motilal Oswal Asset Management Company, this is a general investor behavior, we have also seen in the past that after a fall in the market post recovery we generally see outflows. This was also seen post GFC recovery.

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