Retail flows to equity funds come to grinding halt, down 61% MoM
FMP schemes witnessed an outflow of around Rs 17,644 crore last month.
However, total asset under management of the industry increased 6.20 per cent month-on-month to Rs 25.27 lakh crore in April against Rs 23.80 lakh crore in March.
FMP schemes witnessed an outflow of around Rs 17,644 crore last month. “The outflow from fixed maturity plans was due to term completion of such plans. New inflows witnessed a slowdown due to the events happened in the recent past. There is still nervousness in the market and people are wondering why ratings downgrades are happening. People may stand on the sides and evaluate the situation before taking a position,” said NS Venkatesh, Chief Executive Officer, AMFI.
Two leading fund houses, Kotak Mahindra AMC and HDFC AMC, last month admitted to redemption pressures in their select fixed income schemes and sought more time for payouts.
Retail investors continued to invest in mutual funds through systematic investment plans (SIPs). Mutual funds witnessed Rs 8,238.28 crore inflows through SIPs in April, up 2.27 per cent MoM against Rs 8,055 crore in March. The figure stood at Rs 6,690 crore in April last year. Amfi has reclassified the number on the basis of categorisation.
Mutual funds added 3.62 lakh SIP folios in April. Retail AUM stood at Rs 10.90 lakh crore in April against Rs 10.72 lakh crore in March. Balanced funds saw total outflow of Rs 1,614.80 crore in April.