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Mutual Funds

Equity Mutual Funds See 11-Month High in Net Flows in August : Data Monster


Today we cover the monthly report covering the sales and redemption/ repurchase data of Mutual Funds in India. This will be a regular feature going forward. Do share your views and feedback on this.
Update: We have a tweet from Aashish Sommaiyaa (CEO at MOSL MF) which says most equity funds are actually in Arb funds. Read about this in more detail. 

Debt Funds: Massive Flows Inward

  • We saw investors buy big time into Debt funds as more than 77,000 cr. worth “gross” purchases were made in August. This is the highest in 17 months.
  • Redemptions were not extraordinary, at Rs. 49,345 crore.
  • Which means the net inflows were not that high at Rs. 28,457 crore – lesser than last month.


Equity: Biggest Net Investments in 11 months

Note: This is no longer true – check this post. Most investments were in arbitrage funds, which aren’t really equity – they are fixed income investments disguised as equity.

  • Gross Purchases for the month of August, 2016 stood at Rs. 21,313 crore – a jump of over Rs. 8,000 crore compared to July, 2016.
  • This was the highest in 17 months with these levels seen during June, 2015 at Rs. 17,929 crore.
  • Net Inflows were the highest in 11 months at Rs. 6,505 crore. 


Balanced Funds: Slow But Catching Up

  • Slow to catch up with purchases of Rs. 3,878 crore and redemption of Rs. 1,146 crore.


The Big Data Chart: Inflows, Outflows and Net flows

  • Barring Liquid Market funds, remaining 3 groups witnessed a net positive flow of funds.
  • Debt funds witnessed a higher redemption similar to equity funds.

Source: AMFI -> Research & Information -> AMFI Monthly

Equity AUM At 466,000 cr.

Total assets under equity funds is over 466,000 cr. (not including the equity portion of balanced funds). This is the highest we have seen. Remember, at the last “high” of the Nifty, in Jan 2015, total mutual fund assets in equity was only about 340,000 cr. – so we are seeing interest rise substantially since then.
Debt funds have an AUM of about 720,000 cr. which has also risen, since Jan 2015’s 531,000 cr. There’s just a lot more money coming to mutual funds!


Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.


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