AMFI has just disclosed the mutual fund flow data for the quarter ended June 2020 and some interesting numbers emerge. For the Jun-20 quarter, debt mutual funds saw net inflow of Rs.111,000 crore while equity inflows were much lower at less than Rs.12,000 crore. Within debt funds, liquid funds, banking & PSU funds and corporate bond funds saw heavy inflows.

However, Templeton overhang continued as credit risk funds and medium duration funds saw heavy outflows during the Jun-20 quarter. People even lost faith in closed ended FMPs as it saw heavy outflows in excess of Rs.17,000 crore during the Jun-20 quarter. The bigger concern was the sharp fall in the overall buy and sell volumes, especially in debt funds.

In fact, the overall buy and sell volumes in the equity fund segment were also lower but the fall in debt funds segment was more pronounced compared to the previous four quarters. This hints at pressures that corporate treasuries were facing in the midst of COVID-19. Among hybrid funds, only cash-futures arbitrage funds managed to attract inflows.