Morningstar’s manager research team has come out with India Domestic Fund Flows report which provides insights into flows, asset trends, and performance for open ended domestic funds focused in the Indian equity and debt markets.
Here are some key takeaways from the report:
Open-ended funds (across all categories) witnessed outflows of Rs - 44,709 crore during January-March 2019. The trend turned positive During April-December 2019 which helped open end funds receive inflows of Rs 2.17 lakh crore.
In 2019, large cap funds received the lion’s share of inflows at Rs 13,568 crore, closely followed by multi-caps (Rs 13,039 crore). Overall, equity funds received inflows of Rs 20,624 crore during January -March 2019 and Rs 53,391 crores during April-December 2019.
Overall, fixed income funds collected Rs 20,330 crore from January to March 2019 and Rs 1.08 lakh crore from April to December 2019. In the fixed-income category (excluding liquid, money market, overnight, and ultra-short-term funds) in 2019, the Banking & PSU category and corporate bond category witnessed the highest flows of Rs 38,717 crore and Rs 26,660 crore, respectively.
The credit risk category, which witnessed a spate of downgrades in some of its fund’s underlying resulted in the category witnessing net outflows of Rs - 25,547 crore. Almost all subcategories in the allocation category, namely aggressive allocation (Rs - 28,576 crore), equity saving (Rs -7,358 crore), conservative allocation (Rs - 3,507 crore) and multi-asset allocation (Rs - 343 crore), witnessed outflows in 2019.
Top Gainers
On the AMC front, SBI Mutual Fund topped the chart with the highest net inflow at Rs 71,742 crore. Inflows in exchange traded fund (Rs 27,490 crore) contributed significantly to this growth. This was followed by ICICI Prudential, which received Rs 37,909 crore, IDFC MF mopped up Rs 35,659 crore, Axis MF collected Rs 35,334 crore, and Kotak Mutual Fund received net inflow of Rs 32,074 crore.
Among AMCs that witnessed the highest outflows, Nippon India suffered outflow of Rs 36,209 crore. There was a change in ownership in the AMC. A large chunk of this was due to outflows from liquid fund assets to the tune of Rs - 14,795 crore.
Other fund houses that witnessed the largest outflows were Aditya Birla Sun Life (Rs - 10,595 crore), followed by UTI (Rs - 8,163 crore), JM Financial (Rs - 5,666 crore), and DSP at Rs - 4,839 crore.
Access the full report here.