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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