Thread by @ICRAAnalytics

Thread: Inflow / Outflow Analysis - May 2020
Net flows for MFs turned positive for the 2nd straight month in May 2020. Strong #inflows in debt oriented open-ended schemes, mainly #Liquid and Banking and PSU funds, continued to support the industry. (1/8)

Also, UST, Low duration, Money market, Short duration, and Medium to long duration funds contributed to the inflows this time. #Arbitrage funds under the #Hybrid category pitched in, too. In fact, net flows for the Hybrid category marked a 14-month high. (2/8)

It is commendable that under the current tough circumstances, industry’s net inflows in May increased 54% to Rs. 70,813 crore sequentially, marking a 4-month high. Maximum net outflows were seen in Overnight funds that somewhat took the sheen away from the flows. (3/8)

Further, winding up of six debt schemes by one of the largest asset management companies in April 2020 came as a shock for investors. Credit risk funds, hence, continued to bleed with net outflows of Rs. 5,173 crore. (4/8)

The going got tough for Equity funds including #ELSS (including close ended and interval schemes) as net inflows fell for the second consecutive month, sequentially, on the back of market volatility and negative #GDP projections for FY21. (5/8)

Though the decline in May was comparatively lower than the fall in April, net inflows marked a 5-month low. Net inflows in Equity funds declined nearly 17% sequentially to Rs. 5,046 crore. The slide has come at a time when the Sensex, fell 3.84%. (6/8)

Though there was a dip in inflows in the Large cap and Multi cap funds, both were found to be the most preferred under the Equity category. Only the Large & mid cap funds saw growth in net flows. (7/8)

Overall, net flows for the industry fell 8% on an annual basis.

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