Investors continue to pull out of equity MFs
Though the average assets under management (AUM) of the mutual fund (MF) industry grew by about 6% to cross the Rs 8 lakh crore mark for the first time in November, investors continue to pull money out of equity schemes.
By M Allirajan, TNN |
COIMBATORE: Though the average assets under management (AUM) of the mutual fund (MF) industry grew by about 6% to cross the Rs 8 lakh crore mark for the first time in November, investors continue to pull money out of equity schemes. The equity category witnessed outflows for the fourth consecutive month. Net outflows from equity MFs came at Rs 1109 crore, data with the Association of Mutual Funds in India (AMFI) shows.
While the capital markets have more than doubled from the lows they hit in March, net inflows into equity MFs increased only by 28.45% to Rs 2,302 crore in March-November compared to the same period the previous year. The equity category has registered net outflows to the tune of Rs 5130 crore since August, AMFI data shows.
Redemptions in equity funds, which hit a 22-month high in October, however came lower at Rs 4903 crore in November . With the Sensex trading strongly before Diwali profit booking rose sharply in October when redemptions in equity schemes touched Rs 6384 crore, a new high. "The broader indices have given more than 100% returns this year. So, many investors took their profits out," says Krishna Sanghvi, head, equities, Kotak Mahindra Mutual Fund.
In all, investors made redemptions totaling Rs 21,410 crore between August and November, nearly 141% more than the same period the previous year.
While the capital markets have more than doubled from the lows they hit in March, net inflows into equity MFs increased only by 28.45% to Rs 2,302 crore in March-November compared to the same period the previous year. The equity category has registered net outflows to the tune of Rs 5130 crore since August, AMFI data shows.
Redemptions in equity funds, which hit a 22-month high in October, however came lower at Rs 4903 crore in November . With the Sensex trading strongly before Diwali profit booking rose sharply in October when redemptions in equity schemes touched Rs 6384 crore, a new high. "The broader indices have given more than 100% returns this year. So, many investors took their profits out," says Krishna Sanghvi, head, equities, Kotak Mahindra Mutual Fund.
In all, investors made redemptions totaling Rs 21,410 crore between August and November, nearly 141% more than the same period the previous year.
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