Small investors show courage under fire, park funds in SIP
Barring August, there have been fresh inflows into equity funds this year, an indicator that retail investors have chosen to stay on so far.
By TIMESOFINDIA.COM |
Despite mounting pessimism among investors, there is fresh money flowing into equity mutual fund schemes. Barring August, there have been fresh inflows into equity funds this year, an indicator that retail investors have chosen to stay on so far. However, fund managers are apprehensive that October could be a month of high outflows.
According to AMFI data, open-ended equity schemes recorded fresh inflows worth Rs 658 crore in September. This genre of fund schemes also witnessed positive inflows between January and July. There was an outflow worth Rs 95 crore in August. Investors are not very keen on closed-ended equity funds, as most schemes of this type have logged outflows in all months after March.
Though there have been a few equity New Fund Offerings (NFOs) hitting the market between March and August , very little money flowed in through these offerings.
Counting out ICICI Prudential Focused Equity and AIG World Gold (both funds closed in May), almost all schemes launched during the considered period had to prune their mobilisation targets ���Over 40% of fresh money flowing into equity funds is through SIPs.
Though there has been some redemption , there is an overwhelming majority who has started investing into SIPs. We are selling equity mutual fund products in these markets as well,��� said Tata Mutual Fund managing director Ved Prakash Chaturvedi.
Twelve fund houses managed to witness a rise in their average Assets Under Management (AUM). Canara Robeco Mutual Fund recorded the highest growth in average AUM, in absolute terms as well as in percentage terms. Its average assets rose by Rs 1,090 crore, or 22%, to Rs 6,006 crore in September .
Other key gainers in absolute terms were Sundaram BNP Paribas, Franklin Templeton, ABN Amro and Kotak Mahindra, among others, noted a recent Crisil study. According to sources, the time is opportune to invest in SIPs, as such investments will fetch a higher number of quality shares. Mutual funds found value in equities by buying to the extent of Rs 2,292 crore in September ��� the third highest in the year after January and June this year.
On an overall basis, mutual funds also remained net buyers of equity in first six months of 2008 from January-September , to the extent of Rs 12,712 crore.
���We are expecting an outflow in October. Funds have sold in excess of Rs 6,000 crore last week ��� hinting redemption pressure. SIP investors with long-term view can continue their investments. It doesn���t make sense for investors to redeem their SIP portfolios at current market levels,��� said Pavitra Anand, a Mumbai-based independent financial analyst.
According to AMFI data, open-ended equity schemes recorded fresh inflows worth Rs 658 crore in September. This genre of fund schemes also witnessed positive inflows between January and July. There was an outflow worth Rs 95 crore in August. Investors are not very keen on closed-ended equity funds, as most schemes of this type have logged outflows in all months after March.
Though there have been a few equity New Fund Offerings (NFOs) hitting the market between March and August , very little money flowed in through these offerings.
Counting out ICICI Prudential Focused Equity and AIG World Gold (both funds closed in May), almost all schemes launched during the considered period had to prune their mobilisation targets ���Over 40% of fresh money flowing into equity funds is through SIPs.
Though there has been some redemption , there is an overwhelming majority who has started investing into SIPs. We are selling equity mutual fund products in these markets as well,��� said Tata Mutual Fund managing director Ved Prakash Chaturvedi.
Twelve fund houses managed to witness a rise in their average Assets Under Management (AUM). Canara Robeco Mutual Fund recorded the highest growth in average AUM, in absolute terms as well as in percentage terms. Its average assets rose by Rs 1,090 crore, or 22%, to Rs 6,006 crore in September .
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Other key gainers in absolute terms were Sundaram BNP Paribas, Franklin Templeton, ABN Amro and Kotak Mahindra, among others, noted a recent Crisil study. According to sources, the time is opportune to invest in SIPs, as such investments will fetch a higher number of quality shares. Mutual funds found value in equities by buying to the extent of Rs 2,292 crore in September ��� the third highest in the year after January and June this year.
On an overall basis, mutual funds also remained net buyers of equity in first six months of 2008 from January-September , to the extent of Rs 12,712 crore.
���We are expecting an outflow in October. Funds have sold in excess of Rs 6,000 crore last week ��� hinting redemption pressure. SIP investors with long-term view can continue their investments. It doesn���t make sense for investors to redeem their SIP portfolios at current market levels,��� said Pavitra Anand, a Mumbai-based independent financial analyst.
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