EUR 120.00 For Business Accounts Only

MOSL: FUND FOLIO (September 2019)-Equity inflows at multi-month-high, defy market volatility

FUND FOLIO (September 2019): Equity inflows at multi-month-high, defy market volatility

 

Key observations

• The Nifty oscillated the 10,700-11,100 range in Aug’19 to finally close 0.9% lower. Even the benchmark is now nearly back to square one, wiping off majority of its gains for the year (up just 1.5% now v/s 9.8% YTD CY19 in May’19). This is a clear indication of deteriorating market sentiment amid concerns about the macro environment as well as the lack of earnings revival.
• Nevertheless, investors continued to park money in mutual funds, with inflows remaining steady and the contribution of systematic investment plans (SIPs) remaining stable at INR82.3b in Aug’19.
• The MF industry’s total AUM increased 3.8% MoM (INR0.9t) to INR25.5t in Aug’19, primarily led by inflows in liquid and equity oriented schemes.
• Inflows in equity schemes (including ELSS and arbitrage) increased from INR140b in the previous month to INR151b in Aug’19 – the highest since Feb’18 – led by a decline in redemptions (-26% MoM at INR120b), even as gross sales were down 10% MoM to INR271b.