Redemptions in June increased 74.9 per cent month-on-month leading to a decline in net inflows from Rs 5,256 crore in the previous month to Rs 241 crore in June 2020- the lowest in 4 years.
Contribution of systematic investment plans (SIPs) declined for the third successive month to Rs 7,927.11 crore from Rs 8,123.03 crore in May. The contribution of SIPs has slipped below the Rs 8,000 crore mark for the first time since November 2018.
Equity AUM (incl. ELSS) of domestic mutual funds increased 7.7 per cent month-on-month led by a rise in market indices (Nifty +7.5 per cent M-o-M) and increase in sales of equity schemes which was up 6 per cent.
Total equity value of the top-20 AMCs increased 8.1 per cent month-on-month but declined 2.5 per cent on a yearly basis in June. Around 52 per cent of top-25 schemes outperformed markets.
Mutual Funds showed interest in Oil & Gas, NBFCs and Banks (Private & PSU), which led to month-on-month increase in their weights in June. Healthcare, Utilities, Technology, Consumer, Capital Goods, Cement and Chemicals saw a month-on-month decline in weights.
Mutual fund industry's net asset under management increased 3.8 per cent month-on-month to Rs 25.5 lakh crore during the month primarily driven by equity funds and income funds.