Equity mutual funds face 45% rise in redemptions during 2017 at Rs 1.9 trn

In 2016, equity redemptions were nearly 70% of total sales; last year, it declined to 55%

Redemptions at equity mutual funds (MFs) climbed in 2017 amid a sharp rally in stock prices. According to statistics provided by the Association of Mutual Funds in India (Amfi), units worth Rs 1.9 trillion of equity schemes were redeemed in 2017, an increase of 45 per cent from Rs 1.3 trillion redeemed in the preceding year.

The redemptions could be on account of a churn in portfolios by investors and also profit-taking by investors after huge appreciation seen in the market in the past four years.

Because of the high gross sales of Rs 3.43 trillion, equity schemes still managed