Equity MF continues to see outflow; investors withdraw Rs 734 cr in Sep

Equity mutual funds witnessed an outflow of Rs 734 crore in September, making it the third consecutive monthly withdrawal, mainly due to pull-out from multi-cap space.

Besides, investors pulled out over Rs 51,900 crore from debt mutual funds (MFs) last month compared to Rs 3,907 crore in August, data from the Association of Mutual Funds in India showed on Thursday.

Overall, the mutual fund industry witnessed a net outflow of a little over Rs 52,000 crore across all segments during the period under review, as against Rs 14,553 crore in August.

This outflow could be attributed to withdrawals from liquid, equity and hybrid schemes.

As per the data, the outflow from equity and equity-linked open-ended schemes was at Rs 734.40 crore in September, compared to Rs 4,000 crore in August and Rs 2,480 crore in July.

Equity MFs saw their first outflow in over four years in July on profit-booking.

Equity schemes attracted Rs 240.55 crore in June, Rs 5,256 crore in May, Rs 6,213 crore in April, Rs 11,723 crore in March, Rs 10,796 crore in February and Rs 7,877 crore in January.

In September this year, except large & mid-cap, focused and sectoral categories, all the other equity categories witnessed net outflow.

In the equity segment, multi-cap was the worst hit with an outflow of Rs 1,114 crore, followed by large-cap ( Rs 576 crore), value fund (Rs 489 crore) and mid-cap (Rs 68 crore).

Among fixed-income securities, liquid schemes saw a pull-out of Rs 65,952 crore, ultra-short duration funds (Rs 4,867 crore) and money market (Rs 4,857 crore).

Credit risk funds saw an outflow of Rs 539 crore in the period under review, which was lower than Rs 554 crore in August, Rs 670 crore in July, Rs 1,494 crore in June, Rs 5,173 crore in May and Rs 19,239 crore in April.

Besides, investors are opting for safe-haven assets with gold exchange-traded funds (ETFs) witnessing an inflow of Rs 597 crore.

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The assets under management of mutual fund industry rose to Rs 26.86 lakh crore at September-end from Rs 27.5 lakh crore at August-end.