According to data released by the Association of Mutual Funds in India (AMFI) on August 8, 2019, the income and debt-oriented schemes witnessed an inflow in July.
The net inflow from income and debt-oriented schemes stood at Rs. 61,845.53 crore during July 2019 as compared to the net outflows of Rs. 1,71,349.32 crore, witnessed in June 2019. Post the IL&FS saga in September 2018, debt mutual funds have been making headlines due to liquidity constraints and defaults made by some NBFCs.
Commenting on the same N S Venkatesh, Chief Executive, AMFI said so far, no defaults have been reported by mutual fund companies this month. “We believe the investors are remaining invested as they are showing maturity to stay invested. Fundamentals for the economy are still strong. Inflation numbers are still contained. Mutual fund as an industry is holding on,” said Venkatesh. The growth and equity- oriented schemes saw a net inflow of Rs. 8112.51 crore in July as compared to Rs. 7663.13 crore in June, 2019, an increase of 6 per cent.
However, the average net assets under management (AAUM) for July 2019 remained flat at Rs. 25,81,025.77 crore, as compared to the last month which was Rs. 25,81,397.21 crore. "Despite difficult month and volatile market conditions, the overall sentiment towards debt, equity and hybrid mutual fund schemes has been positive, and equity SIP contributions are at all time high over last three years. This conveys signs of maturity on the part of retail investors and is reflective of continued investor trust on the Indian MF Industry,” said Ventakesh. Total amount collected through systematic investment plans during July 2019 stood at Rs. 8,324.28 crore as compared to Rs. 8,122.13 crore in June 2019, an increase of 2 per cent.