Equity Mutual Fund Flows dip to 4-month low in January.Tax-Saving Equity-Linked Savings Schemes saw month-on-month Rise in Inflows at Rs. 1,166 Crores…
Investor flows into equity mutual funds, minus withdrawals, fell to a four-month low at Rs. 4,880 Crores in January despite stock rally. Total inflows remained strong at Rs. 17,600 Crores, but redemptions or withdrawals of Rs. 12,720 Crores brought down the figure to Rs. 4,880 Crores.
If not for money coming through systematic investment plans (SIPs), the figure would have been even lower, players said.
“Redemptions in January were quite high compared to previous months. High net worth and seasoned investors booked profits just before the Budget as markets were rising. SIPs have been a saving grace,” said sales head of fund house.
On an overall basis, the mutual fund industry saw healthy net inflows of Rs. 53,817 Crores across categories. Money market and income schemes saw inflows of Rs. 39,000 Crores.
Tax-saving equity-linked savings schemes (ELSSes) saw month-on-month rise in inflows at Rs. 1,166 Crores.
Anjaneya Gautam, national head (mutual funds) at Bajaj Capital, says, “ELSS sales are at their peak in January to March.”
“SIPs alone are contributing Rs. 4,000 Crores per month, which translates into nearly half a lakh crore per annum,” says A Balasubramanian, chief executive of Birla Sun Life Mutual Fund.
Meanwhile, the mutual fund industry’s assets under management (AUM) have grown by 41 per cent so far this financial year. Total AUM passed Rs. 17 Lacs in January.