Inflows into equity mutual funds hit a 4-month low in April: AMFI
- Rise in valuations could have made investors stay away from fresh investments or take advantage of the rally, said Sriram BKR, senior investment strategist at Geojit Financial Services.
Debt mutual fundssaw overall net inflows of ₹1.06 lakh crore in April.
- Analysts believe that the interest in debt mutual funds is due to increased investor interest in
fixed income products.
AdvertisementInflows into the
The last time the inflows were lower than April were in November 2022, when the flows stood at around ₹2,258 crore.
Benchmark index Sensex rallied nearly 4% in the month of April leading for investors to book profits.
“The dip in net flows could be attributed to a sharp drop in gross purchases month-on-month at -34% and a steady rise in redemptions at 9% month-on-month. The rise in valuations could have made investors stay away from fresh investments or take off some money to take advantage of the rally,” said Sriram BKR, senior investment strategist at Geojit Financial Services.
Inflows in the equity mutual funds during April were led by consistent flows in small and mid cap funds at ₹2,182 crore and ₹1,790 crore respectively. Some experts are optimistic that the net inflows would pick up in the next few months as April is relatively a quiet month.
"It is encouraging that the flows have remained positive in April. Historically, April is a relatively quiet month after the hectic activity in March. So not too much should be read into the net flows being lower compared to March. We are confident that the momentum will pick up in the coming months,” G Pradeepkumar, CEO at Union Asset Management Company said.
Investors prefer fixed income products over equity funds amid volatility
On the other hand, debt mutual funds saw overall net inflows of ₹1.06 lakh crore in April due to strong flows in liquid funds that received inflows of ₹63,219 crore, followed by money market funds at ₹13,960 crore. In March, debt MF saw outflows of ₹56,884 crore.
Analysts read the strong inflows in debt funds as increased investor interest in fixed income products than in equity funds that are facing volatility.
“Also, the data for April 2023 shows that investors preferred fixed income as a preferred choice of investment than equity oriented options,” added Sriram.
Further, in April, the contribution of retail investors through SIPs fell to ₹13,727 crore from ₹14,276 crore in March. In March SIP flows had hit an all-time high crossing the ₹14,000 crore mark after inflows of ₹13,686 crore in February and ₹13,856 crore in January.
AdvertisementMeanwhile, gold ETFs saw inflows of ₹124 crore in April as compared to outflows of ₹266 crore in March given
SEE ALSO: JSW Infrastructure to come out with ₹2,800 crore IPO; third group company to go public
Income Tax department raids freshly listed Mankind Pharma’s premises over alleged tax evasion
Popular on BI
- The Cybertruck's lack of door handles confused its first buyers — leading Elon Musk to show them how to open the truck
- Adani Group to invest USD 75 bn to scale up AGEL's RE portfolio to 45 GW: Gautam Adani
- OnlyFans star Riley Reid plans to 'immortalize' herself using AI. Here's how her team built her new chatbot.
- Electric eels can change the genetic composition of other organisms by shocking them!
- Exploring vibrant flavors: 10 healthy salad options in India
- 10 dry fruits to include in your daily winter diet
- Paytm to focus on big ticket loans to low-risk credit-worthy customers
- 10 Cities in India perfect for a chill and relaxed life