Page 20 - Banking Finance May 2021

MUTUAL FUND

Mutual Fund

News

Mutual funds sell equities and, hence, the net outflows," he liquid funds, ultra-short duration funds,
further added. money market funds and short-
worth Rs. 1.29 trillion in duration funds. Some of these outflows

FY21 Equity mutual funds see are seasonal, as corporate treasuries
Domestic mutual funds sold shares 1st net inflow in 8 months pull out funds to pay advance tax in
worth Rs. 1.29 trillion in FY21 - the March.
After 8 months of net outflows, equity
most in a decade - even as stock
mutual funds attracted net inflows of
markets rallied to record highs during Aditya Birla Sun Life AMC
Rs. 7,376 crore in March, 2021 with all
the year amid a gush in foreign files DRHP for IPO
categories of open-ended funds barring
liquidity inflows. multi-cap, value and contra funds Aditya Birla Sun Life AMC Ltd has
Data from SEBI showed that the year reporting inflows. recently filed a draft red herring
witnessed high redemption from equity However, the data released by the prospectus with the Securities and
mutual funds as new retail investors Association of Mutual Funds of India Exchange Board of India to raise funds
took to investing in equities directly. showed that closed-ended equity via initial public offering.
Anand Vardarajan, Business Head, schemes saw net outflows of Rs. 1,739 Aditya Birla Capital Ltd and Sun Life
Banking, Alternate Products and crore due to maturing of the schemes. (India) AMC stated that they will
Product Strategy, Tata Asset Of the total net inflows, systematic together sell a 13.5% stake in their
Management Ltd., said, "Equity as an investment plans accounted for Rs. asset management joint venture -
asset class did extremely well in the last 9,182 crore in March, a substantial Aditya Birla Sun Life AMC Ltd. Aditya
financial year with the Sensex clocking jump over February's Rs. 7,528 crore. Birla Capital will sell up to 2.88 million
almost 68% return. Low expectations, Total flows into equity funds were the shares held by it in the asset
cheap valuations and global liquidity highest since March, 2020. However, management business, while Sun Life
led to a market rally." according to N.S. Venkatesh, CEO, (India) AMC will sell up to 36.03 million
"However, investor sentiment was not AMFI, some of these inflows were due shares.
very upbeat and they took an approach to holidays at the end of February, Kotak Investment Banking, Bofa
which shifted flows of around Rs. 500
of sell on rally. In equities, there is a Securities, Citigroup Global markets
tendency to sit over one's losses but crore to March. India, Axis Capital, ICICI Securities, IIFL
trim gains. Usually, it is big returns or Open-ended debt mutual funds, on the Securities, JM Financial, Motilal Oswal
quick returns. FY21 was a rare year other hand, saw net outflows of Rs. Investment Banking, SBI Capital and
when it was big and quick, and 52,528 crore, led by short-term debt Yes Securities are the book running
investors perhaps chose to pocket that categories like low duration funds, lead managers to the issue.

20 | 2021 | MAY | BANKING FINANCE