VR Logo

Equity inflows boost MF Assets

For the second month running, equity funds have witnessed net inflows

The mutual fund industry for the second time in a row after January witnessed net inflows in the month of February 2010.

Investors added Rs 6,365 crore to the coffers in February 2010. According to data provided by Association of Mutual Funds of India (Amfi), back in January, investors had added Rs 97,242 crore to the coffers.

In February, it was the Income category which saw the maximum inflows to the tune of Rs 4,887 crore. In January this category had witnessed net inflows of Rs 1,06,092 crore though there were net outflows in December to the tune of Rs 140,789 crore.

There was some good news for the equity category as well in February. This category witnessed the next highest inflows of Rs 1,514 crore. In January too, this category had net inflows of Rs 980 crore. It is worth a mention here that the category had faced continuous outflows since August to December 2009. Investors had pulled out around Rs 7,300 crore since then - Rs 2,185 crore in December, 2009 alone.

Balanced category too witnessed inflows of Rs 88 crore. January figures revealed net inflows of Rs 56 crore.

On the other end of the spectrum, however, Liquid category witnessed the highest outflows in February to the tune of Rs 516 crore. This category had witnessed a huge outflow to the tune of Rs 10, 218 crore in January. The category had witnessed inflows in November 2009. Apart from that, it has been witnessing net outflows since August last year.

The gilt category witnessed net outflows to the tune of Rs 185 crore in February, the net outflow figures for this category in January were Rs 257 crore.

Gold ETFs continued their good run as there were net inflows to the tune of Rs 118 crore in February.

On the other hand, two funds were launched in the open ended income category – Edelweiss Income Advantage Fund and Peerless Ultra Short Term Fund both of which raised Rs 277 crore. Apart from that, one open ended liquid fund – Peerless Liquid Fund, one open ended Fund of Fund – Fidelity Global Assets fund and Kotak Nifty ETF belonging to the open ended other ETF category were launched in February. Eight close ended debt funds (FMP) were also launched which raised Rs 2,329 crore in February.

Net Inflow/Outflow
Category  Jan-10  Feb-10  Change (%)*
Balanced 56 88 0.51
ELSS 268 335 1.49
Equity 980 1514 0.90
Fund of Funds Investing Overseas -58 46 1.64
Gilt -257 -185 -5.50
Gold ETFs 112 118 8.28
Income 106092 4887 1.04
Liquid/Money Market -10218 -516 -0.72
Other ETFs 267 78 6.18
Source: AMFI (Includes open and close ended funds)
*Change (%) over the previous month's assets; Figures in Rs crore