Indian MF Sector: Equity schemes see inflows of Rs. 2,000

Indian Mutual fund (MF) equity schemes saw inflows to the tune of Rs. 2,000 crore in August, 2011 on the back of lower equity market valuations. Retail investors have become smarter and are entering equity schemes when markets are down, as we saw in August.

Smart inflows were seen in the form of lumpsum investments from investors, who felt that current market valuations were attractive.
Regular inflows also continued to flow in the form of SIPs (Systematic Investment Plans).
In 2011, July, equity schemes had seen net redemption of Rs. 729 crore.

According to the AMFI ( Association of mutual Funds in India) data, on an overall basis, the MF industry saw redemption worth Rs. 14,597 Crore with most outflows witnessed in the category of Income and Liquid Funds.

The average AUM (Assets Under Management) in, 2011 August, stood at over Rs. 6.96 lakh Crore or lower by 4.32% compared to 2011, July when average AUM was approximately Rs. 7.28 lakh Crore

In 2011, August, Equity schemes (Rs. 1,942 Crore), Balanced schemes ( Rs. 210 crore), Equity-Linked saving Schemes- ELSS (Rs. 44 crore) and Gold ETFS (Rs. 494 crore) saw inflows while Income schemes (Rs 6,925 crore), Liquid schemes (Rs10,066 crore), Gilt schemes (R86 crore), and other ETF (Rs147 crore) and fund of fund (FoF) schemes investing overseas (Rs. 63 crore) saw redemptions.
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