Fixed maturity plans or
FMPs have seen net outflows of Rs 17,644 crore in
April, shows monthly data released by
AMFI. The category has seen fresh purchases of Rs 384 crore during the month.
NS Venkatesh, Chief Executive, Amfi, downplayed the large outflow and said it is mainly because the term of many FMPs got over this month. “FMPs are closed-ended schemes which are launched in a period around March with a period of little over three years to get the taxation benefit. The basic reason for the outflows from the FMPs is that their term or period got over and thus the money got out,” said Amfi Chief Executive. “And, of course, there is nervousness in the market due to the credit events of downgraded and defaults in the market as well," he adds.
Net assets under management in FMPs stood at Rs 1,41,171 crore as on April end.
It is not be possible to compare the FMP flows data of April with previous month or any other period in the past as Amfi has put out the April
mutual funds data as per the new format suggested by the capital market regulator Sebi. The new format gives out the data as per mutual fund recategorisation exercise conducted by Sebi in October 2017.
“It will not be possible to compare the data as Amfi has given out the data in the new format only from April 2019. Going forward, Amfi will follow the new format,” said Amfi Chief.
As per Amfi, close-ended income/ debt-oriented schemes category have shown net outflows of Rs 18,950 crore in April, mainly contributed by the outflows from FMPs. Apart from FMPs, capital protection oriented funds saw negative net inflows of Rs 607 crore, infrastructure debt fund (-Rs 314 crore), and other debt schemes (-Rs 382 crore) .
Credit risk funds also saw net outflows worth Rs 1,253 crore in April. The new purchases in the credit risk funds for the month stood at Rs 995 crore.
Mutual fund investors, however, continued to show their confidence in investing in mutual funds through systematic investment plan. SIP inflows for the month stood at Rs 8,238.28 crore, a month-on-month growth of 2.3 per cent. SIP inflows during April 2018 were Rs 6,990 crore.
SIP numbers have seen a healthy growth despite all the negative events that have taken place in the mutual fund space. "There is no slowdown in SIP numbers,” said
N.S. Venkatesh.
Equity-oriented schemes saw net inflows of Rs 4,608 crore. The equity category includes multi cap funds, large cap, large & mid cap, mid cap, small cap, dividend yield, value/contra fund, focused fund, sectoral/thematic and ELSS funds.
Average net assets under management of the mutual funds industry was recorded at Rs 25.27 lakh crore, an Y-o-Y growth of 7 per cent.