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India's equity funds continue to face heavy outflows.
After witnessing positive flow of funds in August, retail investors once again chose to book profits and move out in September as indices hovered close to their all time highs.
Amid poor sales of equities and higher redemptions, industry registered a net outflow of Rs 2,231 crore in September. This is the highest in last four months. Against sales of a little less than Rs 2,000 crore, investors redeemed units worth Rs 4,225 crore, according to the latest monthly statistics released by Association of Mutual Funds in India (Amfi).
Such large redemptions happened at a time when industry officials had started talking about a trend reversal. However, investors proved them wrong and sold units in bulk.
This is the second largest net outflows so far this financial year. In May, the industry had a much higher outflow of Rs 3,357 crore.
From equity linked saving schemes (ELSS), net outflows was around Rs 115 crore while in diversified equity schemes, damage was severe at Rs 2,116 crore.
