NEW DELHI: Mutual fund industry witnessed a massive outflow of Rs 70,000 crore in June on the back of heavy redemption in debt funds, which saw net outflows of Rs 92,000 crore. The outflow in debt funds was largely accounted for by overnight, liquid and ultra-short duration funds, which together were responsible for over half of the outflow in debt funds.
N S Venkatesh, chief executive of mutual fund body AMFI, attributed the negative flows in debt schemes to quarter-ending. “Corporates redeem their Debt investments for advance tax payments and banks want to avoid capital charge enforced by RBI ahead of the quarter ending, he said adding that July and August 2022 would be better for debt schemes.
However, equity funds continue to see net inflows. Despite volatile equity markets, equity mutual funds received net inflows of Rs 15,500 crore. Even in May equity funds had managed to receive net inflows of Rs 18,500 crore. A big reason for continued inflows in equity funds is robust collection from retail investors through systematic investment plans (SIP).
According to AMFI, the number of SIP accounts stood at an all-time high in June 2022 at 5.54 crore and the monthly SIP contribution was to the tune of Rs 12,276 crore. SIPs now account for Rs 5.51 lakh crore assets under the management of mutual funds. New SIPs registered during June 2022 stood at 17.92 lakh. Retail folios were at an all-time high at 10.72 crores at the end of June, while total mutual fund folios crossed an all-time high at 13.47 crores. Asset under management (AUM) of mutual funds as on 30 June was at Rs 35.64 lakh crore down from Rs 37.22 lakh crore in May.
SIP accounts
According to AMFI, the number of SIP accounts stood at all-time high in June 2022 at 5.54 cr and the monthly SIP contribution was to the tune of Rs 12,276 crore.