Inflows into equity and equity-oriented schemes halved in the month of April 2020 to Rs 6,212 crore from Rs 11,722 crore in March 2020, according to monthly data provided by the Association of Mutual Funds of India (Amfi).
This redemption pressure in equity funds comes at a time when the benchmark indices in India have been taking the beating of the global pandemic. Both Sensex and Nifty have fallen at least 23% this year having recovered a bit in the past month.
Outflows from ELSS schemes have also halved to Rs 5.22 crore in April from Rs 11.72 crore in March 2020.
Debt funds, however, saw some recovery in the past month. Debt funds, on the whole, saw outflows of Rs 1.94 lakh crore in March which improved to inflows worth Rs 43,431 crore. This, in another press release, Amfi attributed to RBI’s recent liquidity support for the mutual fund industry after Franklin Templeton India announced the closure of six of its debt funds.
Also Read: RBI Extends Liquidity Support of Rs 50,000 Crores for Mutual Funds
Within equity funds, multi- and mid-cap funds saw the most redemption pressure. Here’s a snapshot of the top five categories under equity funds and how have they performed in April 2020 over March 2020.
Inflows Into Equity Schemes
| Sr. No. | Category | April 2020 (in Rs crores) | March 2020 (In Rs crores) |
| 1 | Multi Cap | 1,240 | 2,268 |
| 2 | Large Cap | 1,691 | 2,060 |
| 3 | Large and Mid Cap | 346 | 859 |
| 4 | Mid Cap | 497 | 1,233 |
| 5 | Small Cap | 384 | 162 |
Within debt funds, there is record improvement in many categories. Namely, liquid funds have seen inflows of ₹68,848 crores in the month of April, up from outflows of ₹1.1 lakh crore in March. Other categories like ultra short term duration fund, short-duration fund among a few other categories continue to record outflows but lower.
Here are details for a few of the debt fund categories.
Inflows Into Debt Schemes
| Sr. No. | Category | April 2020 (in Rs crores) | March 2020 (In Rs crores) |
| 1 | Liquid Fund | 68,848.01 | -110,037.06 |
| 2 | Ultra Short Duration Fund | -3,419.32 | -29,052.98 |
| 3 | Low Duration Fund | -6,841.07 | -19,921.13 |
| 4 | Short Duration Fund | -2,309.05 | -11,038.53 |
| 5 | Dynamic Bond Fund | -1,155.11 | -833.06 |
| 6 | Corporate Bond Fund | 4,168.92 | -3,791.01 |
| 7 | Credit Risk Fund | -19,238.98 | -5,568.79 |
‘’In the prevailing scenario of low inflation, expected softer interest rate regime, MF industry would see heightened interest in fixed income schemes, especially low duration schemes,’’ Mr. Venkatesh said.
Retail assets under management have risen from the previous month. Assets under management are the total number of assets controlled by a mutual fund. Higher AUMs indicate better investment flow, quality, and management experience on behalf of the fund house. Higher AUMs give higher bandwidth to the fund managers to react to market conditions and change the asset allocation of the fund.
AMFI also publishes the average AUM of all AMCs on a quarterly basis.
| Average Assets under Management (AAUM) for the quarter of January – March 2020 (Rs in Lakhs) | |||
| Sr No | Mutual Fund Name | Average AUM | |
| Excluding Fund of Funds – Domestic but including Fund of Funds – Overseas | Fund Of Funds – Domestic | ||
| 1 | Aditya Birla Sun Life Mutual Fund | 24752167.98 | 23540.10 |
| 2 | Axis Mutual Fund | 13840162.00 | 10752.30 |
| 3 | Baroda Mutual Fund | 1180853.10 | 0 |
| 4 | BNP Paribas Mutual Fund | 764731.41 | 0 |
| 5 | BOI AXA Mutual Fund | 227075.83 | 0 |
| 6 | Canara Robeco Mutual Fund | 1794244.57 | 0.00 |
| 7 | DSP Mutual Fund | 8042159.28 | 0 |
| 8 | Edelweiss Mutual Fund | 2447157.50 | 77856.87 |
| 9 | Essel Mutual Fund | 76307.48 | 0 |
| 10 | Franklin Templeton Mutual Fund | 11632279.83 | 111988.21 |
| 11 | HDFC Mutual Fund | 36978279.64 | 33050.70 |
| 12 | HSBC Mutual Fund | 1132731.02 | 31510.94 |
| 13 | ICICI Prudential Mutual Fund | 35074348.87 | 739809.44 |
| 14 | IDBI Mutual Fund | 503092.93 | 3383.48 |
| 15 | IDFC Mutual Fund | 10391179.37 | 20114.46 |
| 16 | IIFCL Mutual Fund (IDF) | 57103.83 | 0 |
| 17 | IIFL Mutual Fund | 183244.32 | 0 |
| 18 | IL&FS Mutual Fund (IDF) | 183114.91 | 0 |
| 19 | Indiabulls Mutual Fund | 154959.39 | 0 |
| 20 | Invesco Mutual Fund | 2566449.71 | 1855.90 |
| 21 | ITI Mutual Fund | 52680.25 | 0 |
| 22 | JM Financial Mutual Fund | 610927.02 | 0 |
| 23 | Kotak Mahindra Mutual Fund | 18608847.27 | 28335.16 |
| 24 | L&T Mutual Fund | 7105578.83 | 0 |
| 25 | LIC Mutual Fund | 1660540.76 | 0 |
| 26 | Mahindra Mutual Fund | 539627.32 | 0 |
| 27 | Mirae Asset Mutual Fund | 4320030.69 | 0 |
| 28 | Motilal Oswal Mutual Fund | 1995653.36 | 22754.03 |
| 29 | Nippon India Mutual Fund | 20488371.72 | 83637.64 |
| 30 | PGIM India Mutual Fund | 433528.54 | 0 |
| 31 | PPFAS Mutual Fund | 313764.32 | 0 |
| 32 | Principal Mutual Fund | 640340.97 | 0 |
| 33 | quant Mutual Fund | 24855.52 | 0 |
| 34 | Quantum Mutual Fund | 136163.01 | 8279.52 |
| 35 | Sahara Mutual Fund | 4648.42 | 0 |
| 36 | SBI Mutual Fund | 37353660.81 | 43170.71 |
| 37 | Shriram Mutual Fund | 18227.73 | 0 |
| 38 | SREI Mutual Fund (IDF) | 0 | 0 |
| 39 | Sundaram Mutual Fund | 3137680.80 | 0 |
| 40 | Tata Mutual Fund | 5314902.66 | 0 |
| 41 | Taurus Mutual Fund | 41852.19 | 0 |
| 42 | Trust Mutual Fund | 0 | 0 |
| 43 | Union Mutual Fund | 407548.64 | 0 |
| 44 | UTI Mutual Fund | 15151252.87 | 0 |
| 45 | YES Mutual Fund | 25252.49 | 0 |
| Grand Total | 270367579.16 | 1240039.46 | |
Net Assets Under Management
| Net Assets Under Management as on March 31, 2020 (in Rs crores) | Net Assets Under Management as on April 30, 2020 (in Rs crores) | |
| Equity schemes | 578,507.69 | 660,070.27 |
| Debt schemes | 1,029,141.70 | 1,074,741.28 |
New Schemes
This month saw three new schemes being launched in April 2020 in the exchange-traded fund (ETF) category: L&T Nifty 50 Index Fund, L&T Nifty Next 50 Index Fund, and Motilal Oswal S & P 500 Index Fund.
SIP Update
According to Amfi data, the number of SIP accounts has risen to 3.13 crore accounts from 3.11 crore accounts as of March 2020. SIP contribution for April 2020, however, dropped to Rs 8,376.11 crore as compared to 8,641.20 crores as of March 2020.
I write on mutual funds and stocks. Previously, I could be found jamming numbers, money and markets in the newsrooms of BloombergQuint and Hindustan Times. And quite evidently this passion drove me to simplify complex financial concepts for you.
