Investors withdrew a net Rs 10,468.02 crore, higher than the previous month’s Rs 9,253.22 crore, from equity-oriented funds, according to Amfi data for February, thanks to a selloff in all but three categories. Equity mutual funds saw a total inflow of Rs 34,349.09 crore and outflow of Rs 44,817.12 crore, both of which were significantly higher than last month’s figures.
Flexi cap funds saw the biggest outflow at Rs 10,430.90 crore while contra funds saw withdrawals of Rs 1,378.51 crore. Largecap funds also saw outflows of more than Rs 1,000 crore each. On the other hand, multicap funds received net inflows of Rs 4,077.94 crore.
Outflows during the month forced domestic institutional investors, which mostly comprise mutual fund managers, to sell a net Rs 16,358.10 crore worth of stocks, against selling of Rs 11,970.54 crore in the previous month. This is at the time FIIs poured Rs 25,787 crore into the equity markets.
Debt mutual fund schemes saw some inflow during the month, as they cumulatively saw net investments of Rs 1,734.63 crore. Liquid funds got the biggest chink of investment, at Rs 17,301.57 crore. Short duration funds saw withdrawals of Rs 10,286.15 crore.
Debt funds have come under pressure as rising bond yields have negatively affected their net asset value (NAV). Analysts are advising not to invest in long-duration funds, and instead, stick to short-duration ones. Only four of 16 categories saw inflows in February.
The total mutual fund AUM as of February 28 rose to Rs 31,64,113.66 crore even as there was a net outflow of Rs 1,843.57 crore. The rise in AUM was largely due to mark-to-market gains. BSE Sensex climbed 6 per cent during February, while BSE Midcap added 10.49 per cent and BSE Smallcap fell 12 per cent.
