Equity MFs see outflow of Rs12,917 cr in Nov

– Despite the outflow, the assets under management of the industry reached a record Rs30 lakh crore at the end of November from Rs28.23 lakh crore in October, data from the Association of Mutual Funds in India showed

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New Delhi, December 9

Equity-oriented mutual funds witnessed a massive outflow of Rs 12,917 crore in November, making it the fifth straight month of withdrawal as investors booked profit amid higher market valuations.

“We still believe that there is significant amount of money that can come back to the market in the event of any correction. The medium to long-term potential of the equity markets remain strong,” G Pradeepkumar, CEO of Union AMC, said.

Despite the outflow, the Assets Under Management (AUM) of the industry reached a record Rs 30 lakh crore at the end of November from Rs 28.23 lakh crore in October, data from the Association of Mutual Funds in India (AMFI) showed on Tuesday.

“Accommodative credit policy stance, continuous global liquidity flows, coupled with improved economic sentiment driven by healthier corporate earnings and positive GDP growth forecast has led to Indian mutual fund industry AUMs crossing historic highs and touching highest ever Rs 30 lakh crore landmark,” N S Venkatesh, chief executive of AMFI, said.

On the other hand, investors put in Rs 44,984 crore in debt mutual funds last month as compared to Rs 1.1 lakh crore in October.

Overall, the mutual fund industry witnessed a net inflow of Rs 27,914 crore across all segments during the period under review as against an inflow of Rs 98,576 crore in October.

As per the data, outflow from equity and equity-linked open ended schemes was at Rs 12,917 crore in November compared to Rs 2,725 crore in October.

The equity schemes had witnessed an outflow of Rs 734 crore in September, Rs 4,000 crore in August and Rs 2,480 crore in July, which was the first withdrawal in over four years. Such schemes had attracted Rs 240.55 crore in June.

All the equity schemes witnessed outflows last month.

“While gross purchases (new investments) remained steady, the pace of redemptions picked up as markets made new highs, suggesting investors looked to book some profits given the higher market valuations. Since July, equity-oriented mutual funds have witnessed a net outflow of Rs 22,500 crore,” Kaustubh Belapurkar, Director (Manager Research) at Morningstar India, said. — PTI