Categories: Business

Equity mutual fund inflow plunges 27 percent in FY20

Mutual Fund Inflow

new Delhi. Investors invested Rs 81,600 crore in equity-based mutual fund (MF) schemes in 2019-20. This is 27 percent less than the investment of Rs 1.12 lakh crore made in the financial year 2018-19. This has been reported from the Association of Mutual Funds in India (AMFI) data. However, this is the sixth consecutive year when there has been a net investment in equity mutual funds. The lack of investment in the last financial year was due to the volatility of the stock markets, which led to a reduction in new investment by investors.

As per the data, equity funds including equity-linked savings scheme (ELSS) had a net investment of Rs 81,600 crore in the last financial year. It was Rs 1,11,858 crore in 2018-19. These funds had net investment of Rs 1,71,069 crore in 2017-18, Rs 70,367 crore in 2016-17, Rs 74,024 crore in 2015-16 and Rs 71,029 crore in 2014-15. However, a net withdrawal of Rs 9,269 crore was seen in 2013-14. Investors raised Rs 11,485 crore in March last fiscal, the highest level this year. In addition, he had invested Rs 10,730 crore in February, the highest level in 11 months. The investment also came after the market turmoil caused by the corono virus epidemic.

Morningstar India Senior Analyst-Manager Himanshu Srivastava said the widespread volatility in the stock markets due to the epidemic did not prevent investors from investing in equity funds in February and March. The total managed assets of these funds declined to Rs 6.03 lakh crore at the end of March 2020 from Rs 7.73 lakh crore in March 2019. However, the contribution of SIP (Systematic Investment Plan) to the industry increased from Rs 92,693 crore to Rs 1 lakh crore in 2018-19. The industry added an average of 9.95 lakh SIP accounts during the last financial year, with an average size of Rs 2,750.

This post was published on May 7, 2020 9:49 pm

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