Equity MFs in rough weather

Equity mutual funds have gone through rough weather in the past few months. The headwinds in the secondary market have taken on toll on the industry, which has seen its asset base shrink and net inflows into equity schemes moderate.

The average monthly inflows in the second half of the financial year have been around Rs 4,300 crore compared to Rs 8,000 crore in the first half.

Gross sales, however, have remained consistent at around Rs 11,000 crore, indicating an increase in redemption pressure. On the positive side, the steep correction in the market has failed to make a dent in new accounting openings.