Eq­uity MFs Got Year’s High­est In­flow in July

In­vestors pour in ₹ 20,591 crore in var­i­ous schemes

The Economic Times - - Companies: Pursuit Of Profit -

Mumbai: In­vestors poured in ₹ 20,591 crore into eq­uity-ori­ented mu­tual fund schemes (eq­uity plus bal­anced plus ELSS funds) in July 2017, the high­est in this cal­en­dar year. Of this ₹ 12,037 crore came into eq­uity mu­tual fund schemes, ₹ 7,864 crore into bal­anced funds and ₹ 690 crore into eq­uity-linked sav­ings schemes (ELSS).

Bal­anced funds typ­i­cally have 6580% in eq­uity with the rest in fixed in­come se­cu­ri­ties. In May and June, in­vestors put in ₹ 18,402 crore and ₹ 15,622 crore re­spec­tively. Cu­mu­la­tively, in­vestors have poured in a to­tal of ₹ 1 lakh crore into eq­uity ori­ented mu­tual fund schemes since the start of the year. To­tal as­sets un­der man­age­ment of the mu­tual fund in­dus­try touched a record high of ₹ 19.97 lakh crore.

With in­ter­est rates on fixed de- posits com­ing down and other as­set class like gold and real es­tate of­fer­ing poor re­turns, many new in­vestors are in­vest­ing into eq­uity mu­tual funds. “The in­dus­try has added 10 lakh new in­vestors in the April – June quar­ter,” says A Bala­sub­ra­ma­nian, CEO, Birla Sun­life Mu­tual Fund. As key in­dices con­tinue to surge, wealth man­agers are ask­ing in­vestors are ask­ing first time in­vestors to put money into hy­brid or bal­anced funds.

“Suc­cess­ful im­ple­men­ta­tion of GST with no ma­jor busi­ness dis­rup­tions be­ing re­ported, drove in­vestors into eq­uity mu­tual funds. The first quar­ter re­sults have been bet­ter than ex­pected from most busi­nesses and this hel ped sen­ti­ments,” says Rahul Parikh, CEO, Ba­jaj Cap­i­tal.

OP­POR­TU­NITY IN EQ­UITY

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