Equity MFs log Rs 10,147 cr outflow in December

Overall, the mutual fund industry witnessed a net inflow of Rs 2,968 crore across all the segments during the period under review, much lower than Rs 27,194 crore inflow seen in November

New Delhi: Equity mutual funds witnessed a massive outflow of Rs 10,147 crore in December, making it the sixth consecutive monthly withdrawal, even as the industry’s asset base surged to an all-time high of over Rs 31 lakh crore.

However, investors put in Rs 13,863 crore in debt mutual funds last month as compared to Rs 44,984 crore in November, data from the Association of Mutual Funds in India (Amfi) showed on Friday.

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Overall, the mutual fund industry witnessed a net inflow of Rs 2,968 crore across all the segments during the period under review, much lower than Rs 27,194 crore inflow seen in November. The assets under management (AUM) of the mutual fund industry rose to an all-time high of Rs 31.02 lakh crore in December-end from Rs 30 lakh crore in November-end on inflow from debt funds. “The industry AUM at an all-time high, increase in retail folios and also SIP folios is reflective of investor confidence in mutual fund asset class,” Amfi CEO N S Venkatesh said.

As per the data, outflow from equity and equity-linked open ended schemes was at Rs 10,147 crore in December as compared to Rs 12,917 crore in November. The equity schemes had witnessed an outflow of Rs 2,725 crore in October, Rs 734 crore in September, Rs 4,000 crore in August and Rs 2,480 crore in July, which was their first withdrawal in over four years. Prior to this, such schemes had attracted Rs 240.55 crore in June.

Barring dividend yield and thematic funds, all the equity schemes saw outflows last month. Large cap and multi cap categories were the worst hit during the month, together witnessing a net outflow of Rs 7,417 crore in December. Similarly, hybrid funds saw an outflow of Rs 5,932 crore during December. The outflow for the category stood at Rs 5,249 crore in November.

“While net inflows in equity funds and hybrid are indeed negative, on the back of profit-led redemptions, the gross inflows are a healthy Rs 36,000 crore in these two categories,” Venkatesh said.