All time high inflows suggest that the third wave has not dampened investors’ enthusiasm for equity mutual funds
The peaking of second wave seems to have boosted investor enthusiasm about equities and has drawn them back to mutual funds
The asset management industry is facing unlikely competition from the new-age discount brokers like Zerodha that are luring retail investors away from mutual funds into equity trading
Investors pulled out money from equity funds for the fourth-consecutive month in October. This is in stark contrast to the rally in the markets. Why is there no respite in equity outflows even when the economy is showing initial signs of recovery, corporate sector earnings are improving and markets are clocking record highs? Let's find out in this edition of 3-Point Analysis.
Gross inflows in equity funds were almost stable, but redemptions jumped in October
Gross inflows in equity funds saw a big jump and redemption pressure subsided in September
An increase in folios indicates sustained interest in mutual funds and is a positive for the industry
Investor disinterest in equity funds comes at a time when retail participation in stock markets has gone through the roof
The low net equity inflows shouldn’t be read as fading interest either in equities or mutual funds but is explained by investor’s instinctive response to a dazzling rise in equities
SIP flows holding above Rs 8,000 crore in May despite businesses being at standstill since couple of months is encouraging
Thanks to popularity of SIPs, individual investors now hold a higher share of MF assets at around 53 percent of total AUM as of December-end
The gradual shift of household savings away from physical to financial assets and the increasing share of MFs in part explain the stellar AUM growth
Keep aside the ups and downs in MF mobilization. Systematic Investment Plans (SIPs) remain a favourite among retail investors
Net inflows into equity schemes increased to Rs 8,092 crore in July
Notwithstanding the ebbs and flows in aggregate mobilisation of MFs, retail investors continue to favour Systematic Investment Plans (SIPs)
Equity flows were the dominant driver this month, with an estimated USD 14.6 billion in inflows, while debt flows were more moderate at USD 10.2 billion, according to the report by Institute of International Finance.
Citi Research said retail inflows in mutual funds of USD 6 billion in six months sustainable; cites weak performance of other assets and very low equity ownership.