Equity Mutual Fund Investments Witness Record Fall in August

Equity Mutual Fund Investments Witness Record Fall in August
09/10/2020
Association of Mutual Funds in India (AMFI) has released the monthly data for Mutual Funds for August 2020, which indicates that the Equity mutual funds have seen the record breaking net outflows in this month. 

Owing to the selloff in most categories, investors withdrew a net ?3,999.62 crore from equity-oriented funds as compared to ?2,480.35 crore in July. The inflow in the equity mutual funds have fallen for the sixth straight month. As per the data, equity mutual funds witnessed a total inflow of ?14,558.20 crore and outflow of ?18,557.82 crore. SIP inflow have witnessed a marginal decline to ?7,791.63 crore in August from ?7,830.66 crore in July. 

Amfi Chief Executive, N Venkatesh believes that the inflows have suffered due to Covid-19. He reportedly said that it might take another quarter for things to settle down. He anticipates the mutual funds inflow to rebound looking at the past performance. He said that essentially a reallocation is happening and by December-January funds should move back into equity. 

Hybrid mutual fund schemes also witnessed an outflow worth ?4,819.45 crore. Balanced Hybrid Fund or Aggressive Hybrid Fund were the major contributors to the category recording an outflow of ?2,355.31 crore. The total AUM for the industry fell by ?14,553.11 crore to ?27.49 lakh crore in August 2020. 

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