Investors bailed on equity mutual funds in December, choosing instead to pile into initial public offerings or invest directly in stocks as markets climbed to record highs. Some investors chose to park their money in debt funds. Net outflow from equity mutual funds rose to a record ₹13,121 crore in December, topping the ₹13,004 crore net outflow in the previous month, according to data released by the Association of Mutual Funds in India on Friday.These funds reported a net inflow of ₹4,432.20 crore in December 2019.
Equity mutual funds have seen continuous outflow in the past six months as investors chose to put their money in IPOs, which saw record investor participation, and also directly into stocks. Equity MFs have seen continuous outflow in the past six months as investors opted for IPOs and stocks Total redemptions in equity schemes stood at ₹36,220.28 crore in December, the highest since March 2018. In November, these schemes witnessed redemptions worth ₹27,113.18 crore and ₹15,441.78 crore in December 2019. Investors in mutual funds have been using the market rally as an opportunity to book profits, said Akhil Chaturvedi, associate director and head of sales at Motilal Oswal Asset Management Co.
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