Net inflows into equity MFs hit four-year low

Net inflows, including into ELSS, crashed 95.75% from 5,666.34 crore in May to 240.55 crore in June, the lowest since March 2016, Association of Mutual Funds in India (AMFI) data showed. The figure is 96.89% below last June’s 7,741.04 crore inflows.
Net inflows crashed 95.75% from <span class='webrupee'>₹</span>5,666.34 crore in May to <span class='webrupee'>₹</span>240.55 crore in June.(AP)
Net inflows crashed 95.75% from 5,666.34 crore in May to 240.55 crore in June.(AP)
Published on Jul 09, 2020 04:21 AM IST
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Hindustan Times, New Delhi | ByNasrin Sultana and Neil Borate

Equity mutual funds witnessed the lowest net inflows in 51 months in June, industry data showed on Wednesday, as jittery investors paused investments, while others cashed out in a rising market.

Net inflows, including into ELSS, crashed 95.75% from 5,666.34 crore in May to 240.55 crore in June, the lowest since March 2016, Association of Mutual Funds in India (AMFI) data showed. The figure is 96.89% below last June’s 7,741.04 crore inflows.

Net inflows into equity-oriented funds were substantially lower in June, said Himanshu Srivastava, associate director - manager research, Morningstar India. “This was largely on the back of net outflows from multicap and large-cap funds. This could be attributed to profit-booking by investors given the surge in the markets in recent times,” Srivastava added. The latest figures could be a one-month blip, he added.

Multicap and largecap funds saw net outflows of 777.60 crore and 212.78 crore respectively in June, while midcap and smallcap funds saw net inflows of 36.70 crore and 249.20 crore.

Redemptions in equity schemes almost doubled to 13,520.03 crore in June from 7,283.23 crore in May and 10,664.16 crore a year ago.

At a time of widespread pay cuts, job losses and business uncertainties, inflows through systematic investment plans (SIP) fell below 8,000 crore, touching 7,927.11 crore, in a steady decline from 8,123,03 crore in May and 8,376.11 crore in April. The June SIP figures are the lowest since November 2018.

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Wednesday, January 26, 2022