Net inflows into equity schemes of MFS at highest since February

MUMBAI: Net inflows in equity schemes of mutual funds in October were the highest in nine months, as investors stayed put despite a correction in the market, data from the Association of Mutual Funds in India (Amfi) showed on Friday.

Net inflows in equity mutual funds rose nearly 13% in October to ₹12,622 crore compared with the previous month, the highest since February, after benchmark indices Sensex and Nifty corrected 4.93% and 4.98% in the month. This was helped by lower redemptions. Redemptions from equity schemes were the lowest since December 2016 at ₹10,183 crore.

“Redemptions are bottoming out. The initial scare of market correction has tapered. The total inflows are still not strong though. It is way below the yearago figure,” said Vidya Bala, head of mutual fund research at Fundsindia.com.

“The total inflows may remain tepid, given the state elections this year and the general elections in 2019. This number is of great significance and a barometer of investor interest,” said Bala.

Fund managers agreed that domestic investors were not pulling out in a big way, unlike foreign investors.