Inflows into equity MFs plunge 68% during April
These MFs attracted just Rs 6,480 cr last month as investors took a ‘wait and watch’ approach
image for illustrative purpose
-Equity MFs got Rs 20,534 cr in Mar
- Debt MFs dominated in April as total inflows at Rs 1.21L cr
- MFs’ AUM at Rs 41.62 lakh cr now
New Delhi: Inflows int equity mutual funds plunged by 68 per cent to Rs 6,480 crore in April over the preceding month, as investors took a "wait and watch" approach in allocating additional investments to the category.
However, this was also the 26th consecutive month of inflow in the equity class, which was primarily driven by fund infusion in small-cap and mid-cap categories, data released by the Association of Mutual Funds in India (Amfi) showed on Thursday.
Overall, the 42-player mutual fund industry witnessed a sharp turnaround in April as it attracted Rs 1.21 lakh crore, on huge contributions from debt-oriented schemes, after seeing an outflow of Rs 19,263 crore seen in the previous month. Debt funds saw a net infusion of Rs 1.06 lakh crore following an outflow of Rs 56,884 crore in the preceding month.
The sharp inflow led to the asset under management of the 42-player industry rising to Rs 41.62 lakh crore as of April-end from Rs 39.42 lakh crore at the end of March.
Going by the data, equity mutual funds attracted Rs 6,480 crore in April as compared to a record inflow of Rs 20,534 crore registered in the preceding month.
"We believe since March witnessed good inflows in equity, investors probably took a wait-and-watch approach to allocate additional investments to equity in April while continuing with their existing SIPs (Systematic Investment Plans)," Manish Mehta, National Head and Sales, Marketing & Digital Business, Kotak Mahindra Asset Management Company.
"The rise in valuations could have made investors stay away from fresh investments or take off some money to take advantage of the rally in the market," Sriram BKR, Senior Investment Strategist at Geojit Financial Services, said.
Akhil Chaturvedi, Chief Business Officer at Motilal Oswal AMC, said that inflows have reduced in April compared to March due to the recent rally in the markets, thereby reflecting the cautious stance by investors.
The rise in valuations could have made investors stay away from fresh investments or take off some money to take advantage of the rally in the market
- Sriram BKR, Senior Investment Strategist, Geojit Financial Services
