NET MF INFLOWS 40% OF GROSS SALES

Although there has been robustinflows in equitymutual fund (MF) schemes this year, a set of investors are also pulling out their investments. So far this year, the sales of equity schemes have been to the tune of ~2.33 lakh crore, of which net inflows are around ~1 lakh crore. The remaining ~1.33 lakh crore has been redeemed. In other words, for every ~10 of net sales, ~6 is taken outbywayof redemption. The remaining ~4 is net inflows. Sector executives rule this out as a worry factor as long as net inflows are positive. According to them, redemptions have to happen as MFs are investment vehicles and investors would take money out from the table. The good sign is investors are redeeming with profits. It is to be highlighted that gross redemption, on an average, has been to the tune of about ~15,000 crore per month in 2017. CHANDAN KISHORE KANT provides an insight