Investor continue to pull money out of mutual funds, net outflows more than double from last month

This is for only the second time this fiscal year that net outflows have been recorded overall in the mutual funds industry.

Mutual funds industry saw net outflows from debt as well as equity segment yet again in the month of September, taking the total outflows to Rs 52,2091 crore against total outflows of Rs 14,533 crore. The net outflows this month are over 3 times the outflows in the previous month owing to massive outflows in the debt segment, owing to massive outflows from liquid funds at the end of the July-September quarter, data from the Association of Mutual Funds in India (AMFI) showed. This is for the second time this fiscal year that net outflows have been recorded overall in the mutual funds industry.

In the debt segment, investors withdrew Rs 65,951 crore from liquid funds, against Rs 15,814 crore outflows in the previous month. Outflows of over Rs 4,800 crore were recorded in both, ultra short duration funds and money market funds. Marginal outflows of less than Rs 1,000 crore were seen from long duration funds, credit risk funds, and gilt funds. On the other hand, overnight funds saw inflows of Rs 4,188 crore and Floater funds recorded inflows of Rs 5,199 crore. Banking and PSU funds saw inflows of Rs 6,415 crore in the month of September. Total outflows from open ended debt funds was at Rs 51,962 crore. 

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Equity schemes saw outflows of Rs 734 crore in the previous month, which is significantly down from the massive Rs 4,000 crore recorded in August. Among open ended equity schemes, inflows were recorded in all, except Multicap funds, Large cap funds, Midcap funds, Value funds, and ELSS. From these the most outflows were recorded in Multicap funds at Rs 1,143 crore. In the month of September SEBI came out with a new rule for multicap funds, that was aimed at making them ‘true to the label’. Focused funds saw inflows worth Rs 823 crore. Analysts had predicted profit booking by investors which would lead to outflows from equity schemes.

The AUM of equity oriented schemes in the month of September stood at Rs 7.67 lakh crore which is an increase from Rs 7.66 lakh crore in the previous month. However, the AUM of the mutual fund industry dropped marginally from Rs 27.78 lakh crore in August to Rs 27.74 lakh crore. 

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