Comments
After a temporary reprieve in October, the mutual fund industry returned to witnessing investor exits in November. The industry suffered a net outflow of ₹25,628 crore, with redemptions reaching over ₹9.12 lakh crore, according to data released by the Association of Mutual Funds in India.
Investments during November, that is, value of units sold in both existing and new schemes, fell marginally to ₹8.87 lakh crore from over ₹9.11 lakh crore in October, while investor exits (redemptions) rose to ₹9.12 lakh crore from ₹7.87 lakh crore over the same period.
The total assets under management of the 40-odd fund houses in the country also dropped to ₹10.9 lakh crore in November, from ₹10.95 lakh crore in the preceding month.
Alex Mathews, Research Head, Geojit BNP Paribas Research Services, said the exits can be explained by investors who cashed in their units while the markets rose. “The outflows are because of profit-booking ahead of the Christmas and New Year. Also, IT and pharma stocks performed well in November. Funds invested heavily in these sectors would have appreciated significantly, making investors pull out profits.”
November saw the launch of 28 close-ended new funds and two open-ended funds, collecting a total of ₹4,705 crore. The bulk of the month’s new investments (₹8.82 lakh crore) went into existing open-ended schemes, particularly liquid and money market funds.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.