InvestorQ : Is it true that equity funds saw net outflows in July 2020?
NISHA Nayak made post

Is it true that equity funds saw net outflows in July 2020?

Answer
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2 months ago


That is absolutely correct, but the total outflows from equity funds were not too high at Rs.2480 crore. However, this is the biggest outflow seen in any month in the last four years. However, this is despite SIP inflows remaining fairly strong at Rs.7830 crore.

Clearly, but for the SIP inflows, equity funds would have seen much deeper outflows. That hints at aggressive lump-sum outflows from equity funds. It means while retail investors are still flocking to equity funds, HNI investors are largely staying away.

For the month of July 2020, AMF data shows that debt funds were the flavour of the season with over Rs.93,000 crore coming in across all the debt categories. Of course, credit risk funds continued to see marginal outflows highlighting the sentiment.

Among hybrid funds aggressive allocation funds and arbitrage funds saw outflows even as the successful Bharat Bond ETF collection saved the day for passive flows in July. It may be recollected that the Bharat Bond ETF had been managed by Edelweiss.