AMFI Chief Explains Why Net SIP Is Not Disclosed, Gross Inflow Details
Gross inflows are more important as they measure the investments continuously coming into the scheme, CEO Venkat Chalasani said.
India's mutual fund body continued to defend not releasing the net inflows into the systematic investment plan, saying it distorts the bigger picture. Gross inflows are more important as they measure the investments continuously coming into the scheme, the Association of Mutual Funds in India's Venkat Chalasani told NDTV Profit in an interview.
It's not going to be an 'apple-to-apple comparison' as the instalment that is being withdrawn is the amount that was being invested over some time, the chief executive officer said.
The outflows include various categories, such as redemption on achieving the goal, redeeming the portion and investing into another scheme, redeeming to invest the entire bulk into another scheme and cancellation, he said. "We are not in a position to break it up and come to the correct conclusion. And I don't want to give data that is not right."
It has to be extremely clear that gross inflows have been coming and the overall redemption that happens should be looked at in relation to the overall scheme-wise outflows that are happening, he said. "If the gross inflows come down, then there is something wrong."
Chalasani's defence comes amid media reports that the SIP outflows scaled new highs in July, which is a "misconstrued picture." There is no hesitation to put the net SIP inflows but it distorts the picture as outflows could be investments into other schemes as well, he said.
The total asset under management of SIP is around Rs 13 lakh crore, which constitutes about 20% of the total AUM.
Overall, the systematic investment plan continued to reach new peaks with Rs 23,322 crore of inflows in July, as against a contribution of Rs 21,262 crore in the previous month. The net SIP inflow during May stood at Rs 9,226 crore, less than half the gross inflows. For April, the net SIP inflow stood at Rs 8,660 crore.
Equity inflows declined 8.6% to Rs 37,113.4 crore in July against Rs 40,608.2 crore in June. Net flows recorded an inflow of Rs 1.89 lakh crore against an outflow of Rs 43,636.5 crore in June, led by a jump in the fixed income funds.
