Equity mutual funds have continued to witness steady flows largely due to the participation through systematic investment plans (SIPs). In the month of July, equity mutual funds saw inflows of Rs 12,727 crore its highest after June 2015 when equity funds had seen net flows of over Rs 12,000 crore. The latest data from Association of Mutual Funds in India (Amfi), showed that AUM of the industry as on July 2017 stood at Rs 19.96 lakh crore, with income funds having total AUM of Rs 8.45 lakh crore and assets of equity funds standing at 6.29 lakh crore (which includes equity and ELSS) as on July, 2016. Industry participants say that, participation from retail investors have been very encouraging for the past few months across the equity segments. “We have been witnessing huge flows not only in the equity and equity linked saving schemes (ELSS) but also in balanced funds. Investors are also increasingly getting aware about asset allocation which has resulted in strong flows in balanced funds,” said a MD of a top fund house. He also added that, inflow volume of systematic investment plans (SIPs) now stands at Rs 3,500-4,000 crore on a monthly basis.
The data from Amfi also shows that, new inflows into mutual fund in the month of July stood at Rs 63,504 crore with most coming from income schemes at Rs 60,084 crore. ELSS)also continued to see net inflows of Rs 690 crore in the month of July, 2017. In the current financial year, equity schemes have seen inflows of around Rs 41,000 crore (which includes equity and ELSS). Apart from income schemes, even balanced funds also saw net inflows of Rs 7,864 crore last month along with other exchange traded funds (ETFs) schemes which also saw flows of Rs 1,753 crore.
On the other hand, liquid funds saw outflows of Rs 19,511 crore and fund of fund investing overseas and gold exchange traded funds (ETFs) fund saw outflows of Rs 26 crore and Rs 38 crore, respectively. “SIPs have worked very well for the mutual fund industry and there has been a very positive participation from the beyond 15 (B-15) cities. In the last financial year, inflows worth around Rs 44,000 crore came through SIPs and we hope this year it could cross Rs 50,000 crore. But we now have to see how investors react when there is fall in markets,” said a marketing officer of a leading fund house.