scorecardresearchJune MF trends: Equity inflows surge 166%; a look at key highlights

June MF trends: Equity inflows surge 166%; a look at key highlights

Updated: 11 Jul 2023, 03:45 PM IST
TL;DR.

As per the data released by the Association of Mutual Funds in India (AMFI), the inflows into equity mutual funds witnessed a 166 percent surge to 8,637 crore in June as against 3,240 crore in May.

Even though equity MF inflows more than doubled in June, they are still down 12.8 percent from 3-month average flows.

Even though equity MF inflows more than doubled in June, they are still down 12.8 percent from 3-month average flows.

On the back of the strong momentum in the Indian equity markets, the net inflows in the equity mutual fund schemes saw a massive increase on a month-to-month basis. As per the data released by the Association of Mutual Funds in India (AMFI), the inflows into equity mutual funds witnessed a 166 percent surge to 8,637 crore in June as against 3,240 crore in May.

"The month of June ended on a high note, Nifty crossed the 19,000 mark for the first time and markets made a new all-time high after 6 months (the last all-time high was in December 2022). Despite markets reaching new all-time highs, valuations continue to remain reasonable. Post a dip in equity fund net inflows between April and May (6.5K to 3.2K crore), June 23 saw a sharp rise of 166 percent in equity fund net inflows. The equity fund category of choice for investors continued to remain smallcaps as has been the trend for the quarter and new financial year," said Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC.

Sriram BKR, Senior Investment Strategist at Geojit Financial Services, lists the top MF trends of last month:

1) While the inflows in equity MF surged, the overall mutual fund industry reported net outflows of 2,022 crore, after 2 months of inflows, primarily pulled by liquid funds.

2) Even though equity MF inflows more than doubled in June, they are still down 12.8 percent from 3-month average flows.

- Roughly 37 percent of inflows came from NFOs (new fund offerings).

- Gross purchases went up by 23.5 percent MoM and redemptions also rose 6.89 percent MoM.

3) Top inflows: Smallcap funds 5,472 crore, best in over 48 months. However, the category did not see any NFP launches in June.

- Then, midcap fund inflows at 1,749 crore, up 2.5 percent from 3M average.

4) Outflows: Largecap funds saw the highest outflows worth 2,050 crore followed by focused funds at 1,018 crore and close-ended equity funds worth 393 crore.

5) Debt funds suffered net outflows at 17,061 crore, after 2 months of inflows.

-Money market funds had the highest inflows, worth 6,827 crore, up 82 percent from 3M average, followed by overnight funds at 4,628 crore and low duration funds at 3,358 crore, up 877 percent from 3M average.

6) Outflows: Liquid Funds witnessed the maximum outflows at 28,545 crore, which largely appears to be a quarter-end effect.

7) Hybrid funds had net inflows of 4,611 crore – turned inflows from 3M avg outflows.

- Top inflows: Arbitrage funds had the highest inflows worth 3,366 crore followed by multi AA funds at 1,323 crore.

- Outflows: Aggressive hybrid witnessed the max outflows at 389 crore, down 20 percent from 3M average outflows, followed by balanced advantage/ dynamic AA funds worth 215 crore, down 50 percent from 3M average outflows.

8) Solution funds had net inflows of 126 crore, down 27 percent from 3M average flows.

- Inflows: Retirement funds saw highest inflows at 79 crore, down 28.6 percent from the 3M average, followed by children's fund at 47 crore, down 24 percent from the 3M average.

9) Other schemes got net inflows of 2,057 crore, down 84 percent from 3M average.

- Top inflows: Other ETFs witnessed the highest inflows worth 3,402 crore, down 7 percent from 3M average followed by Gold ETF at 70 crore.

- Outflows: Index funds saw the most outflows at 906 crore but were still at a 14-year low. It was followed by overseas FoFs at 510 crore, a 4-year low.

10) NFO sales in June came in at 3,228 crore, down 11 percent from the 3M average, but much higher than the previous month, across 11 schemes.

- 94 percent NFOs were from 5 equity funds; the rest were from other categories.

 

Article
Source: Geojit
First Published: 11 Jul 2023, 03:45 PM IST