MF Update: February AUM marginally down, month on month

The month of February 2020 has remained quite volatile for Indian equity market. First, it was the impact of Budget that led to a sharp fall in the market. After that, came the news of Coronavirus spread, which made the market even more nervous. Equity mutual investors took this as an opportunity to invest in equities. This is reflected in the monthly inflows figure released by AMFI. For the month of February 2020, the net inflows to the equity market is Rs 10,795 crore, which is higher by 37 per cent on month on month basis.

Equity Funds

The category that attracted the largest inflow was the thematic funds. For the month of February, the total inflows to sectoral/thematic funds were Rs 1,927.74 crore. This was followed by multi-cap and large-cap dedicated funds.

Dividend yield fund and value fund continue to see an outflow of Rs 40.82 and Rs 421 crore, respectively in the month of February 2020.

Despite such an increase in inflows, the AUM of pure equity fund is down by 4.1 per cent on monthly basis, due to a fall in the share prices.

ETFs are another category that saw huge inflows in the month of February. Against Rs 2,345 crore in the month of January 2020, the total inflow in the month of February 2020 stood at Rs 18,448 crore. Gold ETFs attracted Rs 1,483 crore, which was less than 10 per cent of the total ETF inflows.

Debt Funds

The debt funds in total saw a net outflow of Rs 27,939 crore in the month of February 2020 against an inflow of Rs 1.09 lakh crore in the month of January 2020. Liquid and overnight fund saw a major outflow to the tune of Rs 48,825 crore and Rs 1,473 crore, respectively in the month of February 2020.