Big jump in MF equity inflow in December; liquid funds witness outflow

India's mutual fund space witnessed a strong inflow in December 2019. Data released by AMFI shows the net equity inflow stood at Rs 4,432.2 crore for the month against Rs 933 crore in November.

The balanced fund outflow stood at Rs 2,040 crore against Rs 4,932 crore month-on-month (MoM).

On the other hand, liquid funds witnessed an outflow in December against an inflow in November.

Liquid fund outflow was at Rs 71,158.5 crore against an inflow of Rs 6,938 crore MoM, AMFI data shows.

Equity ETF Inflow came at Rs 12,673.5 crore in December against Rs 2,954.5 crore in November.

Commenting on the December 2019 monthly Mutual Fund data, N S Venkatesh, CEO, AMFI said, “Retail Investors continue to repose trust in Mutual Funds as reflected by continued flows through SIPs, despite challenging domestic economic scenario and global trade issues and conflicts. Markets have rallied and indices scaled new peaks, which is reflective of resolution coming through structural policies like IBC and lowering of Interest Rates, as also, expectation from Budget.''

Credit risk outflow was at Rs 1,191 crore in December against Rs 1,899 crore in the previous month.

Largecap funds witnessed an inflow of Rs 1,134.80 crore while the mid and smallcap funds saw an inflow of Rs 796.08 crore and Rs 421.63 crore, respectively, in December.

Index funds saw an inflow of Rs 142.30 crore and inflow in Gold ETF stood at Rs 26.85 crore in December, AMFI's data showed.

“MF Industry data for December indicates a sharp pick-up in retail investor interest in equity funds, with net equity inflows jumping 4 times over November and monthly SIP flows rising from Rs. 8,273 crore in November to a record Rs. 8,518 crore in December. In addition to attractive broader market valuations, there seems to be a growing expectation of strong policy action and market-friendly announcements in the upcoming budget,” said Vishal Kapoor, Chief Executive Officer, IDFC Mutual Fund.