InvestorQ : How have mutual fund flows been during the month of September 2020?
diksha shah made post

How have mutual fund flows been during the month of September 2020?

Answer
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Archita Jajjoo answered.
3 weeks ago


Here is what you need to know about the mutual fund flows into Indian mutual funds in the month of September 2020.

· It was the third month in succession that we got to see equity funds showing outflows. However, they were lower at just Rs.734 crore in September 2020.

· It may be recollected that in August and July 2020, the equity fund outflows were much higher at Rs.4000 crore and Rs.2480 crore respectively.

· There was a lot more aggressive pullout from debt funds at Rs.51,900 crore which can be largely attributed quarter end liquidity management by corporate investors.

· At an overall level, considering all the fund types, net outflow was to the tune of Rs. 52,000 crore in September 2020.

· In terms of trends, equity focused and equity sectoral funds saw inflows while other categories saw outflows. Not surprisingly, multi-cap funds were worst hit.

· As was expected, the outflow pressure in debt funds came from short duration funds like liquid funds and money market funds.

· Credit fund outflows continued in Sep-20 but have largely tapered compared to the intensity of April as there has been a shift to quality.

· The other big trend is that the shift to low cost passive funds like index ETFs and gold ETFs appears to be getting sharper as markets get more uncertain.