Equity MFs Got Year’s Highest Inflow in July
Investors pour in ₹ 20,591 crore in various schemes
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