Equity mutual funds record first net inflows in nine months
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Last Updated: Apr 09, 2021, 09:38 AM IST
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Synopsis
Inflows into equity funds at ₹9,115 cr in March driven by categories like ELSS, sectoral, focus and flexi-cap funds; collections via SIPs at ₹9,182 cr, up from ₹7,528 cr in Feb
Is it the traditional March effect one that makes the average saver unusually generous toward tax-saving equity packages ahead of the FY-end deadline? Or does this reflect newfound optimism in India’s growth-revival story? Regardless of the votes in favour of either explanation, this crucial data set can’t be ignored: The first positive inflow into equity funds after eight months.
Equity-oriented schemes in March have reported net inflows of Rs 9,115 crore. In the previous eight calendar months, equity mutual funds had seen continuous net outflows despite a sharp surge in the stock market. The fall in the market from its all-time highs in February coupled with tax-savings related investments have aided flows, say industry players. Gross redemptions in March came in at Rs 18,908 crore for equity schemes. In the previous three months, redemptions were in the range of Rs 25,000-36,000 crore. “In the last fiscal there were concerns due to the lockdown and investors continued to book profits in rising markets. But now it seems people have started coming back to MFs as they were seeing some light at the end of tunnel post Covid-19,” said Swarup Mohanty, chief executive officer at Mirae Asset Management Company (AMC)
2021-03-09 16:06:05 GMT2021-03-10 00:06:05(Beijing Time) Xinhua English
MUMBAI, March 9 (Xinhua) Indian investors withdrew 2.5 billion U.S. dollars from equity and debt mutual funds in February, as per the data released by the Association of Mutual Funds of India on Tuesday.
Debt mutual funds saw its biggest outflow in the past 23 months with 924 million U.S. dollars withdrawn while equity mutual funds saw 1.4 billion U.S. dollars being withdrawn and the rest were from liquid and money market funds, as per the data.
The outflow from equity was the 8th consecutive month and the biggest since November.
Profit booking or re-allocation to alternate investment avenues like real estate or director or initial public offer led to redemption pressure in equity, said Akhil Chaturvedi, head of Sales & Distribution, Motilal Oswal Asset Management Company.
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