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Logging their first net outflow in 21 months, mutual funds have pulled out nearly ₹5,196 crore from stock markets in March on profit-booking, although for the entire fiscal ending March 31 they have invested more than ₹71,000 crore, so far.
This was the first outflow since May 2014, when MFs had pulled out ₹1,078 crore. Prior to that, they had been continuously infusing money into stock markets.
Despite the huge outflow in March, MFs registered a big net inflow of ₹71,000 crore in the financial year 2015-16, so far.
The reasons for outflow would have been financial year-end compulsions wherein a lot of banks and corporates used to pull out their investments to balance their books, and the sharp rise of 8-8.5 per cent in the shares, which might have triggered profit-booking, said Wealthforce.com Founder Siddhant Jain.
Jain said: “Coming month seems good as it is the start of a new financial year and a lot of retail investors start their SIPs with a new financial year. We expect good inflows in MFs leading to them putting money into the market.”
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