During April when benchmark indices had a sigh a relief with a recoup of 20% losses from the recent lows seen in the brutal March sell-off, mutual funds emerged as the biggest sellers in a span of 4 years as per the SEBI data.
And that aggressive selling session by mutual funds was witnessed toward the end just following the record level of buying seen in March.
In accordance with the SEBI data, mutual funds in April sold Rs. 7965.5 crore, the highest since March 2016 when it offloaded Rs. 10,194.5 crore. Funds sold massively in sectors such as media and entertainment, auto, metals, construction and paper during the month after indices showed resilience from recent lows, thereby providing them the chance to make quick exit.
Nonetheless in March when the benchmark indices fell sharply, mutual funds bought heavily into equity funds worth Rs. 33,708.54 crore.
As per the data from Value Research, mutual funds have been increasing their cash levels in open-ended equity funds. Fund managers are now taking a cautious stance in the wake of the coronavirus-led uncertainties and had the highest cash levels in eight months in April.