Investors dump flexi-cap funds in January: AMFI

Selling pressure on equity mutual fund schemes eased in January 2021. Redemption from equity mutual funds was Rs 9,253 crore in January, compared to Rs 10,147 crore in December 2020, as per data released by the Association of Mutual Funds in India (AMFI).

Total assets under management for the mutual fund industry stood at Rs 30.5 lakh crore as on January 31, 2021, compared to Rs 31.02 lakh crore as on December 31, 2020.

Flexi-cap funds saw net outflows of Rs 5,933 crore in January. This is the first time that data on flexi-cap funds has been announced separately. Sixteen schemes made it to the flexi-cap category from the multi-cap fund segment.

Inflows from systematic investment plans (SIPs)  stood at Rs 8,023 crore in January, compared to Rs 8,418 crore in the previous month. The number of SIP accounts grew to 3.56 crore in January compared to 3.47 crore in December.

Hybrid schemes saw net investments of Rs 2141 crore compared to redemptions of Rs 5,932 crore in the previous month.

Debt funds saw net redemptions of Rs 33408 crore in January. Liquid funds witnessed outflows of Rs 45,315 crore. But short duration and corporate bond fund saw net inflows of Rs 6,892 crore and Rs 5,428 crore, respectively in January.

Credit risk funds registered net inflows of Rs366.44 crore compared to net redemptions of Rs 190 crore in December. “Some risk appetite is coming back. Relatively better yield offered by credit risk portfolios compared to other bond funds’ portfolios also attracted investors,” said NS Venkatesh, Chief Executive, AMFI.

Gold ETFs experienced net inflows of Rs 624 crore in January against Rs 430 crore in the previous month. Falling gold prices attracted investors to gold ETFs.