Consistent inflow of fresh money, coupled with decline in redemptions, has given fund houses a reason to cheer. Net outflow from the equity segment fell remarkably in November compared to the previous month.
According to the data released by the Association of Mutual Funds in India (Amfi), net outflow from equity and equity-linked saving schemes (ELSS) put together has dipped to Rs 103 crore against over Rs 3,000 crore in the previous month.
Gross sales of equity schemes had already surpassed last year’s sales during the April-October period. “Gross equity sales are robust. Fresh money to the tune of Rs 5,700 crore in the equity segment is not a small sum,” said equity head of a large fund house. However, sentiments among investors had not changed much and they tend to redeem, he added.
Redemption from the pure equity side stood at Rs 5,519 crore, while it was Rs 268 crore from ELSS. “Redemptions have come down in November, as the month saw reasonable correction in the equity segment that did not allow investors to exit. At the same time, new investors, too, came in as markets corrected,” said chief investment officer of a mid-sized fund house.
| THE DECLINE Net outflow/inflow during NOVEMBER | |
| Category | Net inflow/ (outflow) |
| Income | 11,307 |
| Equity | -41 |
| Balanced | 255 |
| Liquid/Money Market | 6,111 |
| GILT | 431 |
| ELSS | -62 |
| Gold ETFs | 172 |
| Other ETFs | 200 |
| Fund of Funds investing overseas | 6 |
| Total | 18,379 |
| Source : AMFI (Rs crore) | |
Inflows in the equity segment jumped 10 per cent in November to Rs 5,684 crore compared with Rs 5,164 crore in October.
Of all categories, only equity schemes saw a bit of net outflow (see table). Overall, the industry witnessed a net inflow of Rs 18,379 crore.
The income category registered highest net inflow of Rs 11,307 crore, followed by liquid and money market segment (Rs 6,111 crore).
As on November 30, the industry’s net asset under management stood at Rs 6,65,282 crore, of which assets under pure equity and ELSS constituted around 31 per cent at Rs 2,03,677 crore.
