Mutual fund traders continued to redeem cash from fairness MFs for the sixth straight month in December because the markets touched new highs. However, inflows through systematic investments plans (SIPs) remained strong regardless of internet outflows from fairness schemes.
Data from the Association of Mutual funds in India (Amfi) present that equity-oriented schemes noticed internet outflows of Rs 10,147.12 crore, with all the ten classes witnessing redemptions. Overall, the MF trade noticed internet inflows of Rs 2,967.86 crore in December, whereas internet AUM as on December was at Rs 31.02 lakh crore.
Amfi knowledge point out that fund mobilised by fairness schemes have been Rs 26,073.16 crore in December, whereas redemptions have been of `36,220.28 crore. Market members say traders are reserving earnings as fairness markets contact new highs. In December, the Sensex and Nifty have been up by 8.2% and seven.8%, respectively.
NS Venkatesh, chief govt at Amfi, says, “Equity markets have touched all time high and investors are booking profits. I think if markets continue to do well, we might see investors continue to book profits.” Between July and December, fairness MFs witnessed internet outflows of almost Rs 33,000 crore. In November, fairness schemes had seen outflows of Rs 12,917.36 crore.
The influx in SIPs was Rs 8,418.11 crore in December, in contrast with Rs 7,302.16 crore in November. Officials at Amfi stated round Rs 500 crore of SIPs due in November have been adjusted in December because the final three days of November have been non-business days.
Market members additionally say that among the cash is even shifting from fairness mutual funds to direct fairness. “Re-allocation of large part of these redemptions would be in direct equities where the experience of investors have been good in recent past, alongside demand for IPOs and real estate would also have sucked up the liquidity,” stated Akhil Chaturvedi, affiliate director and head of gross sales, Motilal Oswal Asset Management Company.
Open-ended debt-oriented schemes noticed internet inflows of Rs 13,682.77 lakh crore in December. Officials in the trade say that there’s flight to security in direction of debt funds as traders are unsure concerning the present rally in the fairness markets.