IGI Logo

SIP traction remains strong | Debt inflows make a comeback | Liquid segment sees outflows

* Net flows turned positive, coming in at INR351b for Jan’22. This was following outflows on INR44b in Dec’21, driven by Equity (INR146b), Debt (INR150b), and Others – primarily Index Funds and ETFs (INR89b).

* FY22YTD industry flows stand at INR2.8t (v/s INR2.4t in FY21YTD), driven by strong inflows in equity (INR1,062b), hybrid (INR956b), and other (INR1,029b) schemes. Debt schemes have reported outflows of INR480b in FY22YTD.

* The number of folio additions remained strong at 2.9m, driven by equity and other schemes (primarily ETFs). Liquid funds saw a reduction in the folio count.

* SIP flows reached new highs of INR115b, indicating growth of 44% YoY and 2% MoM. The number of SIP accounts opened during the month stood at ~1.4m.

Debt flows make a comeback; Liquid continues to see net outflows

Debt flows turned positive, with inflows of INR150b, v/s outflows on INR332b in Dec’21. However, flows in the Liquid segment remained negative at INR97b v/s INR332b in Dec’21. While the Liquid segment saw negative flows, overnight, ultrashort duration, and money market funds saw positive flows. Most other segments witnessed negative flows. Debt AUM de-grew MoM to INR10.0t, while Liquid AUM grew 5.4% MoM to INR5.1t.

Equity inflows decline MoM due to lack of NFOs

Net inflows in equity schemes declined sequentially, coming in at INR146b (v/s INR250b in Dec’21). During the month, no NFOs were launched in the Equity or Hybrid category, indicating strong flows in existing schemes. Within the Equity categories, the Flexi-cap, Sectoral/Thematic, and Largecap schemes saw the highest net inflows in Jan’22. Hybrid flows stood at INR62b v/s INR6b in Dec’21. Equity AUM improved 3.8% MoM to INR13.2t on the impact of positive flows – as the MTM impact was negligible (broader indices end-to-end were flattish). Hybrid AUM saw gains of 2.3% MoM to INR5t. Equity schemes saw strong folio additions of 2m.

Passives see net inflows, led by NFOs

Other schemes (predominantly index funds and ETFs) saw positive flows of INR89b (v/s INR187b in Dec’21), with fund NFO mobilization of INR27b during the month. Gold ETFs saw outflows of INR4.5b v/s INR3.1b in positive flows in Dec’21. Other ETFs saw inflows decline to INR40b in Jan’22 from INR135b in Dec’21. Index funds saw continued healthy inflows of INR49b (v/s INR45b MoM).

To Read Complete Report & Disclaimer Click Here

For More Motilal Oswal Securities Ltd Disclaimer http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html SEBI Registration number is INH000000412

Above views are of the author and not of the website kindly read disclaimer