Equity inflows abate
The recent volatility in markets seems to have made investors wait on the sidelines; the Sensex dropped 4% in March. The recent Association of Mutual Funds in India, or AMFI, data shows that equity fund net inflows have fallen to Rs 2,954 crore on the back of higher redemptions. Gross redemptions in March stood at Rs 36,148 crore.
Equity Linked Savings Schemes gained traction
Due to the tax season, investors rushed to ELSS which saw net inflows of Rs 3,703 crore in March 2018.
Balanced funds remained popular
Despite the fall in pure equity fund inflows in March, industry experts said that systematic investment plans, or SIP, inflows continue to be robust. Investors preferred to allocate money towards hybrid funds like balanced category which saw net inflows of Rs 6,754 crore in March 2018.
Debt funds lost sheen
Due to quarter end, liquid funds saw net outflows to the tune of Rs 54,979 crore in March 2018. Income funds too saw net outflows of Rs 13,719 crore. The story was similar in gilt funds category which saw outflows of Rs 475 crore as investors rushed towards short term funds due to RBI’s hawkish tone.
Rush of Fixed Maturity Plans
The industry launched 73 FMPs which mopped up Rs 19,523 crore in March 2018. Besides, the industry launched five closed-end equity funds which collected Rs 1,899 crore. Overall, the industry mopped up Rs 22,124 crore from new fund offers in March 2018.
Industry’s assets under management declined
Due to outflows in debt funds and slowdown of inflows in pure equity funds, the industry’s AUM fell by 4% to Rs 21.36 lakh crore in March 2018 from Rs 22.20 lakh crore in February 2018.
