AMFI data for February 2020 showed that net inflows into open ended mutual funds surged to ₹10,796 crore, highest since March 2019. Large cap funds, multi-cap funds, mid-cap funds and small-cap funds saw net inflows in the range of 1,400 to 1,600 crore, similar to the flows they received in Jan 2020. However sectoral/thematic funds witnessed a large jump from just ₹3.8 crore in Jan 2020 to ₹1,928 crore in Feb 2020, some of it due to new launches in February. Gold Exchange Traded Funds (ETFs) saw a huge jump in net inflows from ₹202 crores in Jan 2020 to ₹1,483 crores in Feb 2020. “The surge in equity scheme inflows is very heartening to see. People have bought more, even as the market has dipped. There's buying in both large and mid-cap funds, quite contrary to the notion that large cap is not delivering value and hence avoided by investors," said Swarup Mohanty, CEO, Mirae Asset Mutual Fund.
Open ended equity funds
Hybrid funds on the other hand continued to witness outflows, as they have been seeing for much of the past year. Despite a significant sales push by AMCs towards dynamic asset allocation funds, flows into the category have been tepid.
Open ended hybrid funds
Debt funds continued to see a rotation from credit risk funds to corporate bond funds and banking and PSU debt funds, as they have seen for the past year. This is largely due to the multiple defaults and downgrades hitting then NAVs of such funds. Debt funds saw a high level of volatility in February due to the downgrade of Vodafone Idea as a result of the Supreme Court verdict on its AGR dues.