Profit booking by investors slows flows
Inflows into equity mutual funds (MFs) dropped sharply by 40% to ₹5,988 crore in June on profit booking by investors as stock markets witnessed sharp rallies in recent times.
In comparison, the equity MFs had seen net inflows to the tune of ₹10,083 crore in May, the highest fund infusion in 14 months, data from the Association of Mutual Funds in India (AMFI) showed on Thursday.
Equity schemes saw a net inflow of ₹3,437 crore in April and ₹9,115 crore in March. Prior to this, equity schemes had consistently witnessed outflows for 8 months from July 2020 to February 2021.
“With net inflows in March, April, May and now in June, clearly investors are gaining their conviction back on the equity markets,” said Himanshu Srivastava, associate director – manager research at Morningstar India.
“SIP AUM at an all-time high and now forming almost 15% of the industry AUMs and the number of SIP accounts breaching 4-crore mark for the first time, is reflective of the continued retail investor confidence in the mutual fund asset class,” said N. S. Venkatesh, chief executive, AMFI.
(With inputs from Lalatendu Mishra in Mumbai)
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