InvestorQ : What were the Mutual funds flows in September 2020 into equity funds like?
Neelam Naik made post

What were the Mutual funds flows in September 2020 into equity funds like?

Answer
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Anu Biswas answered.
2 weeks ago


If you look at the overall MF AUM it has certainly come down in Sep-20 compared to Aug-20. Of course, that can be largely attributed to debt fund outflows as well as the sharp correction in equity markets in the last week of September, when Sensex lost 2000 points.

However, the struggle for equity fund flows continues despite good SIP infusion. In fact, for the third month in a row, equity funds saw outflows; albeit at much lower levels of Rs.734 crore. Out flows were as high as Rs.4000 crore in Aug-20 and Rs.2480 crore in Jul-20.

However, the slowdown in equity fund flows is definitely taking its toll on of mutual funds investments into the equity market as you would have seen in the daily data. The major outflows were from multi-cap funds due to regulatory uncertainty. Focused funds saw sustained interest on Alpha hopes.

SIPs in Sep-20 were below Rs.8000 crore for fourth month in a row; but strong nevertheless. It only means that lump-sum selling in equity funds has been rampant. The good news is that a surge in young investors is keeping SIP equity funds flows ticking. We will have to wait and see.