February Equity MF Inflows At Their Highest In 11 Months

Despite the market volatility, the equity inflows have been at their highest in February at Rs. 10000 crore. But nonetheless, as investors fear heighten given the Yes Bank crisis and the recent market meltdown, the mutual fund industry may witness increased redemptions as also there can be reduction in the inflows in the time to come.

February Equity MF Inflows At Their Highest In 11 Months

In the ETF category there has been a big inflow registered, primarily from the institutional players including provident funds.

In the previous month, inflows tallied were at Rs. 7877 crore versus Rs. 10795 crore for the past month.

Small investors continue to show faith in their equity investments. They have been increasing their SIP (systematic investment plans) allocations in the form of additional purchases", a senior executive of a fund house is quoted as saying in a leading business dailies report.

For large cap fund there was a bigger chunk of inflow at Rs. 2626 crore, while the influx was heavy even for mid-and small-cap segment with Rs 1,797 crore and Rs. 1212 crore, respectively.

So, if the panic grips further in the markets due to no signs of coronavirus ebbing, there can be pressure on both the inflows and redemption of mutual fund schemes by investors, who so far have keep up the faith.

In case of liquid funds, there was seen outflow to the tune of Rs. 40,000 crore as institutional funds were fast selling in these funds due to advance tax obligation.

Nonetheless, there was seen some improved sentiment on the credit risk fund as outflows declined to Rs. 636 crore in February as against Rs. 1214 crore in the earlier month.

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