MFs also bought Rights Entitlement shares of Arvind Fashions, Gateway Distriparks and PVR in July.
Equity funds in July witnessed an outflow for the first time in more than four years, with outflow in equity cash segment doubling compared to June.
The inflow into equity funds has been declining for five consecutive months. In July, mutual fund houses sold Rs 2,480 crore in equity schemes against an inflow of Rs 240 crore in June. The outflow in the cash segment was Rs 7,231.99 crore in July against Rs 3,689.67 crore in the previous month.
The big reason was profit booking and redemption pressure as the market rallied 50 percent from March lows, though FIIs were net buyers in July (Rs 2,490.19 crore) and June (Rs 5,492.95 crore)."With a sudden rally in the market post COVID-19, investors have rushed to book profits which led to such high redemptions in the equity mutual funds," Narnolia said.