Mutual fund investors shifted to debt schemes in April; equity funds also logged inflows

Mutual fund investors shifted to debt schemes in April; equity funds also logged inflows

NEW DELHI: Mutual fund investors continued to pour money into equity funds for the second month in April even as the domestic benchmark indices fell off highs, giving fresh entry points to them. However, the net investment was far lower than previous month’s.

Amfi data released for April showed investors poured in a net of Rs 3,437.37 crore against the previous month’s Rs 9,115.12 crore in equity-oriented funds, and the buying was seen largely in broader market funds. Equity funds saw a total inflow of Rs 22,077.10 crore and outflow of Rs 18,639.73 crore, both of which were significantly lower than last month’s figures.

Thematic and sectoral funds saw the biggest inflow of Rs 1,705.14 crore, while midcap funds and large & midcap funds saw net inflows of Rs 700-1,000 crore. Contrarian funds and multicap funds saw drawdowns.

Thanks to the inflows, domestic institutional investors bought a net Rs 11,088.80 crore worth of stocks, against Rs 5,204.20 crore worth of stock purchases in the previous month. FIIs turned net sellers in April, and withdrew Rs 9,659 crore from domestic equities, NSDL data showed.

Debt mutual fund schemes saw massive fund mobilisation during the month, as they cumulatively saw inflow of Rs 1,00,903.48 crore. Investors put un a net of Rs 41,507.47 crore in liquid funds and Rs 20,286.62 crore in money market funds.

Total mutual fund AUM as on March 31 rose to Rs 32,37,985.09 crore, thanks to a net inflow of Rs 92,906.45 crore. The rise in AUM was largely due to massive inflows to debt schemes. BSE Sensex dropped 1.47 per cent in April, while BSE Midcap Index climbed 0.65 per cent and BSE Smallcap added 4.94 per cent.

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