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Domestic mutual funds (MFs), for a third month in a row, offloaded shares in November, selling equities worth Rs 482 crore to take total outflows from equities to Rs 13,721 crore in 2013 so far.
MFs have sold shares through 2013, barring May and August. MFs offloaded shares worth Rs 4,018 crore in October and Rs 2,801 crore in September.
On the other hand, net inflows by foreign institutional investors were more than Rs 8,000 crore into stocks last month, according to data available with the market regulator. That took total investments by foreign investors in equities to over Rs 97,000 crore in 2013 so far.
Debt MFs were net buyers in the debt market in November and bought debts schemes to the tune of Rs 41,623 crore. With the equity market remaining volatile in 2013, domestic funds have increased their focus on debt market to benefit from higher interest rates and have invested Rs 4.3 lakh crore in the debt market in the first 11 months of the year.
The market participants believe that fund houses have been shifting focus from equity to debt scheme because of volatility in the secondary market and better returns by the latter as compared to bank fixed deposits.
Another reason for investing in debt schemes could be lower risk compared to equity funds.
