scorecardresearchMutual Funds: Inflow to debt funds witnesses a massive jump, shows AMFI

Mutual Funds: Inflow to debt funds witnesses a massive jump, shows AMFI data

Updated: 09 Aug 2022, 03:48 PM IST
TL;DR.

On account of increase in inflow to ultra-short duration funds and money market funds, debt mutual schemes saw an increase in cash flow whereas equity fund allocation saw a fall .

Equity mutual funds saw a decline in cash inflow during the month of July

Equity mutual funds saw a decline in cash inflow during the month of July

Thanks to the fresh inflow in ultra-short duration funds and money market funds, total inflow to the total debt funds witnessed a significant increase in July as it rises to 4,930 crore. The corresponding figure in June was in the negative territory i.e., an outflow of 92,247 crore.

Sample this. Ultra-short debt funds saw an inflow of 3,728 crore this month against an outflow of 10,058 crore last month. At the same time, inflow into money market instruments rose to 2,638 crore in July against the outflow of 8,126 crore in the previous month. 

Barring these two categories, other debt mutual funds such as medium duration and long duration funds didn’t see a noticeable interest among investors.

On the contrary, equity funds saw a significant fall of 43 percent in its total allocation. Read this article for more details. 

While total inflow in equity mutual funds stood at 15,498 crore last month, it fell to 8,898 crore in the month ending July 31, according to the AMFI (Association of Mutual Funds in India) data released recently.

Mutual Fund category                June data ( crore)July data ( crore)
Ultra-short debt                 -10,057.993,728.02
Money market funds          -8,126.122,638.75
Index funds                     7,301.16,779.23
Other ETFs             5,358.567,635.03
Gold ETFs                    134.83- 456

(Source: AMFI)

There is no denying the fact that market volatility had a spell on the mutual fund sector with passive funds witnessing a decline in their inflow in July. Inflow to index funds stood at 6,779 crore in July against the corresponding figure of 7,301 crore in the month of June.

Gold ETFs saw an outflow at 456 crore this month against an inflow of 134.83 crore last month.

At the same time, contribution to other exchange traded funds (ETFs) rose to 7,635 crore against 5,358 crore in June.

Even balanced advantage funds, despite their unique character that make them apt for volatile markets, witnessed a decline in their allocation. It fell to an inflow of nearly 554 crore in the month of July, whereas the corresponding figure for June stood at 1,799 crore.

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First Published: 09 Aug 2022, 03:48 PM IST