Mutual Funds invest Rs 2,476 crore in March
New Delhi: Mutual funds invested Rs 2,476 crore in equities in March, making it the first such infusion in 10 months, as consolidation in the market provided investment opportunities to fund managers.
Kaushlendra Singh Sengar, founder and CEO at INVEST19, said mutual funds (MFs) inflow in equities will be stagnant in near future.
Prior to the inflows, mutual funds (MFs) had been withdrawing money from equities since June 2020, data available with the Securities and Exchange Board of India (Sebi) showed. "The markets were a bit volatile in March and at one point of time it was around minus 4 per cent to 5 per cent from the beginning of the month. If we see last few quarters, the market continued to surge and many investors were opting to book profits," Harshad Chetanwala, co-founder of Mywealthgrowth said.
He, further, said some signs of consolidation in the market do give opportunities to fund managers to invest in good ideas if they find them attractive.
"While we will have to wait for industry body Amfi's data on subscription and redemption, volatility in markets would have also paused the redemption till certain extent and hence the fresh flows also would have found its way in the market as well," he added.
Harsh Jain, co-founder and COO of Groww believes that the redemption pressure on mutual funds is reducing as the markets have remained consistent and there have been no major declines in the market despite the second wave. That might be helping with the investor's sentiments.
In addition to that, many new opportunities are emerging in the stock markets as economic recovery of India takes shape and investors become more comfortable with the idea of investing in riskier assets like equities as opposed to traditional assets like FD, gold, he added. "In the recent weeks, with the rising cases in India, the markets have seen some minor correction from which there have been quick recoveries also. Before that, the markets had been rising sharply over a few months. Mutual funds used these dips to buy new stocks and add to existing ones also," Jain noted.
According to Sebi data, MFs put in a net amount of Rs 2,476.5 crore in equities in March.
Before that, MFs withdrew Rs 16,306 crore from equities in February, Rs 13,032 crore in January, Rs 26,428 crore in December, Rs 30,760 crore in November, Rs 14,492 crore in October, Rs 4,134 crore in September, Rs 9,213 crore in August, Rs 9,195 crore in July and Rs 612 crore in June.
