India's equity MFs see net inflows of Rs 458 crore in August

Sector officials had estimated inflows at Rs 400 cr, however this month turned out to be better than expected

India's equity mutual fund schemes (including equity linked saving schemes or ELSS) witnessed a net inflow of Rs 458 crore in August. This is in line with industry's expectations that despite weak markets retail investors largely stayed invested and pumped in fresh money.

 

Though sector officials had put the figure at around Rs 400 crore, but the month turned out to be better than their expectations.

 

According to the statistics released by industry body Association of Mutual Funds in India (Amfi), pure diversified equity schemes had redemptions of units worth Rs 2,193 crore against inflows of Rs 2,660 crore. The month had registered one of the lowest redemptions in recent months.

 

The positive development came during a month when India's stock markets remained highly volatile. At one point of time key indices had nearly lost 10% but managed to cut losses to a large extent and closed the month at less than 4% down.

 

This marks third occasion in the current calendar year that industry could see a positive inflows after March and June.

 

However, ELSS saw a marginal net outflow of Rs 9 crore but it got offset by the relatively better inflows in diversified equity schemes.

 

As on 31 August, overall assets under management (AUM) in equity segment stood at about Rs 1.56 lakh crore - 21% of sector's overall assets.