Mutual Fund investors look to exit market as equity inflows see 27% dip

Industry observers say investors have looked at chance to exit amid uptick in markets

The run-up in the markets seen in September has prompted mutual fund (MF) investors to take money off the table, leading to a dip of 27 per cent in equity flows compared to the previous month.  

“It is typical for investors to look for exits, if their investments have been below water for one to one-and-a-half years. In September, redemptions have gone up and inflows have come off,” said Aashish Sommaiyaa, managing director and chief executive officer (CEO) of Motilal Oswal Asset Management Company (AMC).

In September, net equity inflows stood at Rs 6,609 crore, compared to Rs 9,152 crore in the