NEW DELHI :
Equity mutual funds witnessed a net inflow of around ₹6,489 crore in September, the lowest in the last four months, due to profit-booking by investors after a rally in markets following a reduction in corporate tax.
According to data by the Association of Mutual Funds in India (Amfi), open-ended equity schemes witnessed an infusion of ₹6,609 crore, while there was an outflow of ₹120 crore from close-ended equity plans, translating into a net equity inflow of ₹6,489 crore in September.
In comparison, net inflows in equity and equity-linked saving schemes stood at ₹9,090 crore in August.
Such inflows stood at ₹8,092 crore in July, ₹7,585 crore in June and ₹4,968 crore in May.
"Investors continue to invest into equity funds through SIPs while lumpsum flows remain a mixed bag. There was some profit-booking by investors after the market rally post the corporate tax reduction announcement," said Kaustubh Belapurkar, Director - Manager Research at Morningstar Investment Adviser India.
"Investors will look for cues for a broad-based economic recovery before making larger allocation towards equities," he added.
Despite the decline in inflows, the asset base of equity mutual funds increased to ₹7.57 lakh crore in September from ₹7.16 lakh crore in the preceding month.
Overall, mutual fund schemes witnessed a redemption of ₹1.52 lakh crore last month as compared to an inflow of ₹1.02 lakh crore in August. The massive redemptions could be attributed to debt-oriented schemes, which saw an outflow of ₹1.58 lakh crore.
Among debt-oriented schemes, liquid funds -- with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon --- saw an outflow of ₹1.41 lakh crore.
Besides, gold exchange-traded funds witnessed an infusion of ₹44 crore against an inflow of ₹145 crore in August.
The outflow has pulled down the asset base of the MF industry, comprising 44 players, by 4 per cent to ₹24.51 lakh crore in September-end from ₹25.47 lakh crore at end-August.
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