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Last Updated : Aug 08, 2019 05:56 PM IST | Source: Moneycontrol.com

AMFI monthly report: Credit risk funds continue to bleed in July; equity fund inflows up 6.7% MoM

Since April, AMFI has followed a new format to release data, as mandated by SEBI. The format requires categorisation of schemes into various segments, open-ended, close-ended, and equity-oriented schemes.

Himadri Buch @himadribuch

The 44-player mutual fund industry witnessed a whopping Rs 3,411 crore worth of outflows from credit risk funds for the fourth consecutive month in July.

Credit risk funds recorded outflows of Rs 2,695 crore in June, according to data released by the Association of Mutual Funds in India (AMFI).

"Credit default events in NBFCs is taking a toll on the credit risk funds. There is a fear in the market that some more money will be lost if they don’t withdraw. So investors are pulling out the money," said a head of fixed income from a private fund house.

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The back-to-back downgrade of debt instruments from IL&FS and Dewan Housing Finance (DHFL), Reliance Home Finance by rating agencies has hurt credit risk funds.

AMFI data for July 2019

Since April, AMFI has followed a new format to release data, as mandated by SEBI. The format requires categorisation of schemes into various segments, open-ended, close-ended, and equity-oriented schemes.

Under the income/debt-oriented schemes, another category that saw a significant drop was medium-duration funds that registered outflows of Rs 956 crore in July.

On the other hand, in the same category, liquid funds which are used by companies to park surplus cash witnessed inflows of Rs 45,441 in July compared to outflows Rs 1.52 lakh crore in June.

After six months of outflows, balanced funds category saw inflows of Rs 674 crore in July. This category had witnessed outflows of Rs 1,910 crore in June.

Equity funds saw inflows of Rs 8,092 crore in July, up 6.7 percent month-on-month.

Commenting on July 2019 MF data, Mr N S Venkatesh, Chief Executive, AMFI said: "Despite difficult month and volatile market conditions, the overall sentiment towards debt, equity and hybrid mutual fund schemes has been positive, and equity SIP contributions are at all time high over last three years. This conveys signs of maturity on the part of retail investors and is reflective of continued investor trust on the Indian MF Industry."

In the last one month, Sensex fell nearly 5 percent.

Overall, the industry witnessed inflows of Rs 87,087.71 crore in July and the AUM of the industry stood at Rs 24.53 lakh crore.

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First Published on Aug 8, 2019 05:52 pm
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