Equity mutual funds see Rs 10,000 cr-inflow in May; indicates investor confidence in economy

FPJ Web DeskUpdated: Wednesday, June 09, 2021, 02:40 PM IST
article-image
Mutual Funds |

Equity mutual funds witnessed a net inflow of over Rs 10,000 crore in May, making it the third consecutive monthly infusion.

This was way higher than Rs 3,437 crore net inflow seen in April and Rs 9,115 crore in March, data from the Association of Mutual Funds in India showed on Wednesday.

Prior to this, equity schemes had consistently witnessed outflow for eight straight months from July 2020 to February 2021.

On the other hand, investors pulled out Rs 44,512 crore from debt mutual funds last month after infusing over Rs 1 lakh crore in April, PTI said.

Overall, the mutual fund industry witnessed an outflow of Rs 38,602 across all segments during the period under review, compared to an inflow of Rs 92,906 crore in April.

As per the data, inflow from equity and equity-linked open ended schemes was at Rs 10,083 crore in May.

Barring equity linked saving schemes (ELSS), which saw a withdrawal of Rs 290 crore, all the equity schemes have seen inflow last month.

Further, Gold exchange traded funds (ETFs) witnessed net inflow of Rs 288 crore last month, compared to Rs 680 crore in April.

The asset under management (AUM) of the mutual fund industry rose to an all time high of Rs 33 lakh crore in May-end from Rs 32.38 lakh crore in April-end.

Mohit Nigam, Head, PMS - Hem Securities said, "If we further dig into specific schemes, multi cap and mid cap schemes topped the list of net inflows while small cap and flexi caps were right behind. Moreover, contributions from SIP also increased month-on-month, recording Rs. 8,818.9 crores against Rs 8,596 crores in April 2021.

"This kind of consistent numbers look favorable for the mutual fund industry and for the economy as a whole as it highlights investor's confidence and normalcy taking its hold back in the economy.

"However, withdrawals of Rs 45,447 crores were seen in liquid funds after an addition of odd Rs 41,500 crores in previous month. This led to a net outflow of Rs 38,602 crores on overall basis. Total AUM of the industry stands at Rs 33.06 trillion, which is higher by 2.1 percent as compared to previous month," he added.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

IKEA to launch first Delhi store by 2025

IKEA to launch first Delhi store by 2025

US Fed hints at slowing down rate hikes

US Fed hints at slowing down rate hikes

Five more Indian states to provide single window clearance for businesses

Five more Indian states to provide single window clearance for businesses

Power consumption in India up by 13.6% for Nov as economic activity speeds up

Power consumption in India up by 13.6% for Nov as economic activity speeds up

Indian govt slashes windfall tax on local crude oil and gas

Indian govt slashes windfall tax on local crude oil and gas