Net in­flows in eq­uity schemes of MFS touch 7-month high in Oct

Mint ST - - NEWS - MUM­BAI

Net in­flows in eq­uity schemes of mu­tual funds in Oc­to­ber were the high­est in seven 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 year-ago fig­ure,” said Vidya Bala, head of mu­tual fund re­search at Fundsin­

“The to­tal in­flows may re­main tepid, given the state elec­tions this year and the gen­eral elec­tions in 2019,” said Bala.

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

“While for­eign in­vestors have been net sellers, do­mes­tic in­vestors seem to be show­ing a lot of re­si­lence in the face of height­ened volatil­ity,” said Navneet Munot, chief in­vest­ment of­fi­cer, SBI Funds Man­age­ment Pvt Ltd.

Mean­while, net in­flows in liq­uid schemes were ₹55,296 crore in Oc­to­ber, a bounce­back af­ter strong out­flows in Septem­ber.

“Liq­uid schemes typ­i­cally see an ad­vance tax out­flow in Septem­ber. Also, last month

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