Retail investors book profit in equity, hybrid MFs for sixth month

Equity and hybrid mutual fund schemes saw continued outflows worth over Rs 16,000 crore in December 2020 due to ongoing redemptions for the sixth month in a row, as per monthly data released by Association of Mutual Funds in India ( Amfi).

However, the rally in the equity market and inflows of over Rs 13,862 crore in the debt schemes helped the industry’s total asset under management to top Rs 31 lakh crore in December, a new all- time high, at Rs 31,02,475 crore, as on December 31. In November, the total mutual industry AUM stood at Rs 30,00,904 crore.

N. S. Venkatesh, chief executive, Amfi, said, "while net- inflows in equity funds and hybrid are indeed negative, on the back of profit- led redemptions, the gross inflows are a healthy Rs 36,000 crore in these two categories.”

Equity- oriented schemes saw outflow of equity assets worth Rs 10,147 crore while hybrid schemes saw outflows worth Rs 5,932 crore. Barring sectoral/ thematic fund ( Rs 3,412 crore) and dividend yield fund ( Rs 1,490 crore) all other equity- oriented schemes saw outflows.

Himanshu Srivastava, associate director– manager research, Morningstar India, said, "Outflows were witnessed across equity fund categories except for dividend yield and sectoral/ thematic funds categories, given both these categories saw the launch of new funds, which managed to garner investor interest. These NFOs collected assets worth Rs 6,312 crore. Large- cap and multi- cap categories were the worst hit during the month. These two categories together witnessed a net outflow of Rs 7,417.16 crore in December."

In debt schemes, corporate bond fund ( Rs 8,609 crore), short duration fund ( Rs 3,953 crore), overnight fund ( Rs 7,410 crore) and liquid fund ( Rs 5,102 crore) saw inflows.