As per AMFI mutual fund report for June, the net assets under management for equity-oriented schemes saw an increase by approximately Rs 50,000 Crores, implying that more mutual funds bought stocks in June compared with May.
What Does This Mean?
The net AUM increased to Rs 7.01 lakh crores in June’20 from Rs 6.5 lakh crore in May’20. Assets under management or AUM refers to the total market value of all the assets being managed by a mutual fund.
Assets in an equity fund are the stocks it holds and also a small proportion in cash so an increase in AUM can be attributed to a rise in the purchase of shares by equity fund managers.
According to a PTI report that cited Securities and Exchange Board of India, mutual funds made an overall investment of approx Rs 39,500 crores from January to June 2020, a four-fold increase from the last year. From January to June 2019, equity mutual fund managers invested around Rs 8,735 crore into stocks.
Equity Oriented Schemes
Inflows into equity mutual fund schemes have seen a 95.5% drop in June 2020 to Rs 240.55 crore. The inflow in May was Rs 5,256.52 crore.
Small-cap funds have seen the least drop in inflows to the tune of Rs 44 crores only in June over May. As you can see in the table below, most categories have either seen a considerable drop in inflows or a significant conversion to outflows from inflows.
June 2020 | ||
| Scheme Name | Repurchase/ Redemption for the month of June 2020 | Net Inflow (+ve)/Outflow (-ve) for the month of June 2020 |
| Multi Cap Fund | 3,319.31 | (777.60) |
| Large Cap Fund | 3,335.51 | (212.78) |
| Large & Mid Cap Fund | 1,058.06 | 88.03 |
| Mid Cap Fund | 1,383.20 | 36.70 |
| Small Cap Fund | 775.32 | 249.20 |
| Sectoral/Thematic Funds | 1,267.00 | 107.76 |
| ELSS | 630.16 | 586.67 |
May 2020 | ||
| Scheme Name | Repurchase/ Redemption for the month of May 2020 | Net Inflow (+ve)/Outflow (-ve) for the month of May 2020 |
| Multi Cap Fund | 1,559.80 | 758.54 |
| Large Cap Fund | 1,489.66 | 1,555.59 |
| Large & Mid Cap Fund | 614.90 | 703.55 |
| Mid Cap Fund | 1,041.09 | 279.69 |
| Small Cap Fund | 673.93 | 293.04 |
| Sectoral/Thematic Funds | 1,001.73 | 197.17 |
| ELSS | 277.62 | 712.37 |
Debt Oriented Schemes
Debt fund inflows have also seen around 95% drop in June 2020.
Inflows into debt fund schemes stood at Rs 2,861.68 crores as compared to Rs 63,665.54 crores in May 2020. Overnight funds and credit risk funds have shown improvement on a month on month basis.
| June 2020 | ||
| Scheme Name | Repurchase/ Redemption for the month of June 2020 | Net Inflow (+ve)/Outflow (-ve) for the month of June 2020 |
| Overnight Fund | 437,814.63 | 1,054.94 |
| Liquid Fund | 436,799.38 | (44,226.23) |
| Ultra Short Duration Fund | 10,421.78 | 1,386.22 |
| Low Duration Fund | 11,293.67 | 12,235.72 |
| Credit Risk Fund | 1,629.84 | (1,493.69) |
| Gilt Fund | 805.17 | 1,159.05 |
| May 2020 | ||
| Scheme Name | Repurchase/ Redemption for the month of May 2020 | Net Inflow (+ve)/ Outflow (-ve) for the month of May 2020 |
| Overnight Fund | 405,439.96 | (15,880.91) |
| Liquid Fund | 313,180.99 | 61,870.87 |
| Ultra Short Duration Fund | 7,925.65 | 1,524.77 |
| Low Duration Fund | 8,704.02 | 301.25 |
| Credit Risk Fund | 5,264.76 | (5,173.04) |
| Gilt Fund | 525.21 | 1,947.08 |
New Schemes Update
Three new schemes were launched in June, one in multi-cap, hybrid, and ‘other ETFs’ categories. The schemes under the categories mentioned above were – BOI AXA Multi-Cap Fund, Mirae Asset Arbitrage Fund, and Nippon India ETF Nifty IT, respectively.
SIP Update
The number of SIP accounts, however, have risen sequentially. The total number of SIP accounts stood at 3.22 crore accounts compared to 3.1 crore accounts in May. However, SIP inflows have reduced. SIP inflows stood at Rs 7,927.1 crore as compared to Rs 8,123.03 crores in May.
Happy Investing!
I write on mutual funds and stocks. My passion for jamming numbers, following money and stock markets drove me to simplify complex financial concepts for you.
