Equity MFs continue to see outflows on profit booking
- Investors have withdrawn `2,725 cr from equity MFs in Oct
- While there are new investors who are investing in the markets, the existing investors continue to book profit given the surge in the equity markets across segments in the recent times
New Delhi: Equity mutual funds witnessed an outflow of Rs 2,725 crore in October, making it the fourth consecutive monthly withdrawal, on profit booking by investors.
All the equity schemes, barring large- and mid-cap and sectoral funds, have seen outflows, data from the Association of Mutual Funds in India (AMFI) showed on Monday. However, investors put in over Rs 1.1 lakh crore from debt mutual funds (MFs) last month after pulling out over Rs 51,900 crore in September. Overall, the MF industry witnessed a net inflow of Rs 98,576 crore across all segments during the period under review, against an outflow of a little over Rs 52,000 crore in September. The positive inflow from debt funds pushed the asset under management (AUM) of the mutual fund industry to record Rs 28.22 lakh crore at the end of October, from Rs 26.86 lakh crore at the end of September.
According to the data, outflow from equity and equity-linked open-ended schemes was at Rs 2,725 crore in October, much higher than the Rs 734 crore outflow seen in September. The equity schemes had witnessed an outflow of Rs 4,000 crore in August and another Rs 2,480 crore in July, which was their first withdrawal in over four years. Prior to this, such schemes had attracted Rs 240.55 crore in June. The net outflows in October could be largely attributed to profit booking by investors on the back of surge in equity markets, said Himanshu Srivastava, associate director (manager research) at Morningstar India.
"The number of folios as well as funds mobilised during the month was higher than September, however, at the same time, the redemption amount too shot up," he added.