The ghost of redemption in equity schemes is back to haunt the domestic fund industry after a gap of five months. The current financial year started on a poor note as the fund market witnessed Rs 1,365 crore of net outflow from its equity category including the equity-linked saving schemes (ELSS). Such large redemption was last seen in October 2010.
On the contrary, all other asset classes — income, GILT, Gold ETFs amid others — saw a robust inflow of funds taking the overall fund flow to 184,331 crore. The redemption in pure equity schemes stood at Rs 1,076 crore while from ELSS Rs 289 crore were redeemed.
“During the month the benchmark index was above 19,000 which triggered redemption. This was coupled up with no fresh money coming into the equity as they got diverted to other asset classes such as fixed maturity plans (FMPs) and Gold ETFs,” says Karan Datta, national sales head at Axis Mutual Fund.
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