EUR 350.00 For Business Accounts Only

MOSL: FUND FOLIO (August 2021): Equity inflows at record highs; defying market volatility

FUND FOLIO (August 2021): Equity inflows at record highs; defying market volatility

 

Key observations

• Elevated market volatility, coupled with concerns around the sticky inflation print, impacted investor sentiment in July’21. Notwithstanding this, the Mutual Fund industry witnessed record inflows. In fact, SIP (systematic investment plan) flows reached new highs, coming in at INR 96.1b in July’21.
• Notably, the exodus of foreign funds (USD1.7b) was the highest since Mar’20. DII inflows, however, spiked to USD2.5b – the highest since Mar’20, contributed by domestic MFs with USD2.6b and DIIs (ex-MFs) with -USD0.1b.
• Equity AUM (incl. ELSS and index funds) of domestic MFs increased 5.2% MoM to INR12.1t in July’21. This was on account of new fund offers (NFOs) launched by mutual fund houses, which led to an increase in equity scheme sales (up 50.8% MoM to INR441b) and a rise in market indices (Nifty up 0.3% MoM). At the same time, redemptions decreased 3.1% MoM to INR222b. Consequently, net inflows reached record highs of INR219b in July’21, from INR63b in June’21.
• The MF industry’s total AUM increased 4.9% MoM (INR1.6t) to INR35.3t in July’21, primarily led by a MoM increase in AUM of equity funds (INR603b), liquid funds (INR541b), and income funds (INR159b).