The mutual fund investors, it seems, were not too enthused by equity fund schemes with total net inflow in growth & equity-oriented schemes declining to ₹15,890 crore in April. The corresponding figure in March was ₹28,463 crore.
The mutual fund categories that saw higher redemptions than inflows included flexi caps, ELSS, mid cap funds and large caps, shows the data released by Association of Mutual Fund in India (AMFI) for the month of April.
Flexi caps saw net inflow of ₹1,708 crore whereas redemption was around ₹2,682.80 crore in the month of April. At the same time, ELSS fund schemes saw an outgo of ₹1,480.92 crore, whereas inflow was ₹306.82 crore.
Likewise, mid cap funds saw an outflow of ₹1,575 crore in comparison to total inflow of ₹1,549 crore.
In case of large cap funds also, a similar pattern was witnessed. Total fund inflow was ₹1,258.96 crore in comparison to redemption to the tune of ₹2,616 crore.
Funds with higher inflow
On the other hand, some category of funds saw a higher inflow than redemption. For instance, focussed funds saw an inflow of ₹1,277 crore in April vis-a-vis an outgo of ₹934 crore.
Multi cap funds saw an inflow of ₹1,340 crore in comparison to an outflow of ₹523.90 crore. Similarly, small cap funds saw an inflow of ₹1,716 crore in comparison to ₹1,346 crore.
The hybrid schemes saw an inflow of ₹7,240 crore whereas the redemption was ₹11,982 crore, lower than the March data of ₹20,611.50 crore.
Despite the decline in inflow in equity schemes, some industry experts are nevertheless upbeat .
“Despite volatility in markets and fear around macros both globally and locally, it is good trend to see continues positive flows in equities. Though lower than last month which may be due to (lack of) NFO allotment, SIP flows are holding strong which is also very positive. It will be interesting to see ongoing investment trends given the intensity of volatility being very high,” says Akhil Chaturvedi, Chief Business Officer, Motilal Oswal Asset Management Company.
Capital markets regulator SEBI has halted new fund offers (NFOs) in mutual funds as industry scrambles to comply with circulars.
The pause will continue until July 1. The regulator has called upon the industry to implement its related circulars on two-factor authentication for redemption of mutual funds and verification of source accounts when mutual fund investments are made.
Fund houses can launch new schemes only after complying with the regulator's circulars.
The net assets under management as on April 30, 2022 were ₹13,55,576 for 312 schemes