Equity mutual funds (MF) witnessed net inflows for the second straight month in April. Senior industry officials said equity funds have logged net inflows of Rs 3,437 crore.
In March, equity funds had seen net inflows of Rs 9,115 crore after a gap of 8 months.
Between July 2020 and February 2021, such schemes saw cumulative net outflows of Rs 47,000 crore even as the benchmark Sensex surged more than 40 per cent during this period.
Market participants say that while inflows through systematic investment plans (SIPs) continued to remain strong and there was no major redemption pressure as seen in the last financial year.
Categories such as thematic funds saw net inflows of Rs 1,705 crore followed by midcap funds which also saw net inflows of Rs 958 crore in April.
Multicap fund, value funds and equity-linked saving schemes (ELSS) saw minor outflows in April.
While inflows through hybrid schemes continued to remain strong at Rs 8,641 crore and even passive funds saw net inflows of Rs 5,079 crore in April.
MFs were net-buyers in the cash market for the second consecutive month. In April, they bought shares worth nearly Rs 6,000 crore, providing some counterbalance to outflows by overseas investors. Foreign portfolio investors (FPIs) sold shares worth nearly Rs 14,000 crore in April—most since March 2020 when the covid-19 pandemic first took hold.
Domestic equity fund managers had pulled-out around Rs 1.23 trillion from domestic stocks amid consistent outflows between July 2020 and February 2021.
Apart from equity funds, debt funds also saw net inflows of over Rs 1 trillion in April, led by sharp flows in liquid, money market and overnight funds.
Overall MF industry in April saw net inflows of Rs 92,906 crore, while average assets under management stood at Rs 32.42 trillion at the end of last month.
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