With the ebbing of the virus risk and equity markets scaling new highs, investors poured in Rs 20,742 crore in equity schemes in July — more than a four-fold rise over June
With positive flows in equity schemes in the past couple of months, mutual funds have turned saviour for equity markets as they are seen absorbing the selling by FPIs
Gross inflows in equity funds have gathered pace, but redemption has more than doubled since July 2020
Ambareesh Baliga, managing director, Edelweiss says the market is currently in a wait-and-watch mode.
The Reserve Bank of India (RBI) on Wednesday allowed banks, a special dispensation to borrow up to Rs 25,000 crore. Lenders can lend the same to mutual fund houses, which are facing redemption pressure on their debt schemes due to sudden spurt in bond yields.
Denying any redemption pressure on mutual funds industry, Vinay Kulkarni, senior fund manager, HDFC MF says the pressure is high on the domestic insurance industry. Kulkarni says they are "okay" on their MF business.