Equity funds witness steady flows despite mkt volatility

By: | Published: January 10, 2017 6:18 AM

Even as the Indian equity markets remained volatile, equity mutual funds have continued to witness steady flows largely due to participation through systematic investment plans (SIPs).

PEs fell back on a variety of models to exit, including strategic sales, secondary deals and initial public offerings. (Reuters)The latest data from the Association of Mutual Funds in India (Amfi) shows that AUMs of the industry as on December 2016 stood at Rs 16.46 lakh crore, with income funds having total AUMs of R7.48 lakh crore and assets of equity funds standing at Rs 4.19 lakh crore. (Reuters)

Even as the Indian equity markets remained volatile, equity mutual funds have continued to witness steady flows largely due to participation through systematic investment plans (SIPs). In December, equity funds saw inflows of Rs 9,196 crore, the highest after June 2015 when they had seen net inflows of around Rs 12,000 crore.

The latest data from the Association of Mutual Funds in India (Amfi) shows that AUMs of the industry as on December 2016 stood at Rs 16.46 lakh crore, with income funds having total AUMs of R7.48 lakh crore and assets of equity funds standing at Rs 4.19 lakh crore.

Industry participants say despite uncertain markets condition, investors have continued to remain invested in equity markets through mutual funds. “Since past few months when markets turned negative, many of the diversified equity schemes continued to perform well and investors are continuing to invest, said the MD of a top fund house.

You May Also Want To Watch:

He added that inflows into systematic investment plans (SIPs) now stand at R3,500-4,000 crore on a monthly basis.

The data from Amfi also shows that new inflows into mutual funds in December stood at R10,923 crore, with most coming from liquid schemes (Rs 26,943 crore).

Equity-linked Saving Scheme (ELSS) witnessed net inflows of R907 crore in December. In the current financial year, equity schemes have seen inflows of around Rs 50,000 crore (which includes equity and ELSS). Balanced funds witnessed net inflows of R3,947 crore last month. Other exchange-traded funds (ETFs) schemes witnessed inflows of Rs 4,349 crore.

On the other hand, income funds saw outflows of Rs 33,182 crore and fund of fund investing overseas and gold ETFs witnessed outflows of Rs 21 crore and 26 crore, respectively.

“In the last few months, the industry had received continuous money from arbitrage funds, but in the month of November-December, money also came into pure equity and balanced funds. It is also encouraging to see that along with equity funds, balanced funds have continued to attract huge flows in the past few months,” said the marketing officer of a fund house.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition