Equity MF saw the monthly net outflow in the month of August (Rs.4,000 cr), for the second consecutive time during last 4 years, as investors preferred to book profit in view of declining household cash-flows in prevailing uncertain economic environment, as well as rising fear of market correction post recent V-shaped recovery.
Most of the equity mutual fund categories witnessed redemption during the month of August 2020, which marked the 5th sequential decline in inflows in equity mutual fund category. except sectoral/thematic category. Debt mutual fund schemes also felt the redemption pressure during August after a strong inflow in the previous month. Nonetheless, total AUM rose to Rs.27.5 lakh crores at the end of August 2020 vs. Rs.27.1 lakh crores at the end of previous month.