Hello Readers!
The first month of the year 2021, is over a week before, and now its time to watch out, what were the total outflows and inflows reports for different mutual fund schemes as per the report presented by AMFI (Association of Mutual Fund In India).
The main focus of the report presented by the AMFI was on the newly introduced Flexi-cap funds, a new category introduced by SEBI (Security Exchange Board of India). As per the data of AMFI, sixteen schemes made it to the Flexi-cap category from the multi-cap fund segment.
Let us have a short look at the highlighted points as per the report of AMFI, which shows the net outflow and inflow in the mutual fund industry in the month of January 2021.
Key Highlights Of AMFI Report!
- There was a slight decrease seen in the total assets under management for the mutual fund industry, in the month of January 31, 2021, as compared to December 31, 2020. The AUM data stood at Rs 30.5 lakh crore as of January 31, 2021, compared to Rs 31.02 lakh crore as of December 31, 2020.
- The January month of 2021 saw a decrease in redemption amount compared to the December month of 2020. Redemption from equity mutual funds was Rs 9,253 crore in January, compared to Rs 10,147 crore in December 2020, as per the reports of AMFI.
- Inflows from systematic investment plans (SIPs) stood at Rs 8,023 crore in January, compared to Rs 8,418 crore in the previous month.
- The month of January 2021 also saw an increase in the number of new SIP accounts than the month of December 2020. The number of SIP accounts grew to 3.56 crore in January compared to 3.47 crore in December.
- This time, AMFI in its report has given a separate space to the data of Flexi-cap funds. Flexi-cap funds saw net outflows of Rs 5,933 crore in January.
- Hybrid schemes saw net investments of Rs 2141 crore compared to redemptions of Rs 5,932 crore in the month of January 2021.
What Were The Scenes With Debt Funds?
Well, debt funds also redemptions, and this was predicted as the interest rates were trending low for a long time. And this scene is more geared up by the Franklin Templeton Debt Fund fiasco.
- Debt funds saw net redemptions of Rs 33408 crore in January.
- Liquid funds witnessed outflows of Rs 45,315 crore in the month of January 2021.
- Scenes were different for short-term and corporate bond funds. These funds saw net inflows of Rs 6,892 crore and Rs 5,428 crore, respectively in January.
- Credit risk funds also saw net inflows of Rs366.44 crore compared to net redemptions of Rs 190 crore in December.
NS Venkatesh, Chief Executive, AMFI, said on this, “Some risk appetite is coming back. Relatively better yield offered by credit risk portfolios compared to other bond funds’ portfolios also attracted investors”.
Gold ETFs were in the list of funds that received good inflows. These funds experienced net inflows of Rs 624 crore in January against Rs 430 crore in the previous month. And the only reason behind this was falling gold prices.
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(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).