August Mutual Fund data: Credit risk funds bleed the most, liquid funds shine

August Mutual Fund data: Credit risk funds bleed the most, liquid funds shine

In August the 44 players mutual fund industry witnessed a net outflow of Rs 2,270 crore from credit risk funds, the highest among all classifications and which was likewise its fifth successive month of outflows.

According to the association of mutual funds in India (AMFI). Outflows fell from July when the segment saw investors pull out Rs 3,411 crore.

On the back of NBFC crisis credit funds continue to suffer. A source said that fear of any extra defaults is keeping investors and most are hauling out.

The back-to-back downgrade of debt instruments from Infrastructure Leasing & Financial Services (IL&FS), Dewan Housing Finance (DHFL), and Reliance Home Finance by rating agencies have hurt the performance of credit risk funds.

As mandated by market regulator SEBI, AMFI has followed a new format to release data since April. The scheme is categorized into various segments required by the format they are open-ended, close-ended and equity-oriented schemes.

Another category that saw a significant growth under income or debt oriented category was medium duration funds, which registered outflows of Rs 561 crore last month as against outflows of Rs 956 crore in July.

liquid funds, which are used by companies to park surplus cash, saw robust inflows of Rs 79,428 crore in August as against inflows of Rs 45,441 lakh crore in July.

In August inflows in balanced funds category reversed, with outflows of Rs 879 crore as against inflows of Rs 674 crore in July.

On the equity front, despite volatility in the equity markets, funds saw inflows of Rs 9,090 crore in August, up 12.3 percent month-on-month. The Sensex closed a volatile August down 0.5 percent.

NS Venkatesh, Chief Executive, AMFI said that For the fourth in succession, Retail Investor Interest in Equity Mutual Funds, continues to be steady, displaying maturity, despite the uncertain economic and volatile market situation.

He also said that Net inflows, largely in all categories of Equity funds, especially in small and mid-cap funds, as also in the Equity Linked Saving Schemes (ELSS) segment, signifies heightened confidence and interest in emerging businesses and disciplined tax planning.

Based on the outlook for September 2019, Venkatesh said that SIPs would continue to witness robust flows on the equity side and liquid funds may see volatility owing to quarter-end phenomenon on the Debt side.
In August SIP inflows stood at
Rs 8230.76 crore, marginally down from Rs 8324.28 crore in July.

As of August 2019 SIP, AUM stood at Rs 2,71,104.77 crore as against Rs 2,68,863.92 crore as of July 2019.

In august overall, the industry (debt + equity) witnessed inflows of Rs 102,538 crore as against Rs 87,087.71 crore in July, with assets under management of Rs 25.47 lakh crore, up from Rs 24.53 lakh crore month-on-month.

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