Investors booked heavy profits, pulled out Rs 7,200 crore from equity MF in September quarter

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Investors have withdrawn Rs 7,200 crore from equity-based mutual funds during July-September. Investors booked profit at higher valuations during the quarter. This information has been reported from the Association of Mutual Funds in India (Amphi). In the same quarter last financial year, investors had infused Rs 23,874 crore in equity MF. However, the assets of Equity MF increased marginally to Rs 7.64 lakh crore by the end of September from Rs 7.24 lakh crore at the end of September, 2019.

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As per the data, there was a withdrawal of Rs 7,214 crore from equity and equity related schemes during the September quarter. In the June quarter, Rs 11,710 crore was invested in these schemes and Rs 30,703 crore in the March quarter. According to the data, there was a withdrawal of Rs 2,480 crore from equity MF in July. Withdrawal of Rs 4,000 crore in August and Rs 734 crore in September. Harshad Chetanwala of said, “Investor stocks are continuously booking profits. This has led to withdrawal of equity MF in the last quarter.

FPI invested 22 thousand crores in October

Foreign portfolio investors (FPIs) made net purchases of Rs 22,033 crore in Indian markets in October. The main reason for this was the resumption of economic activity and good quarterly results of companies. Earlier in September, FPI sold a net worth of Rs 3,419 crore. According to data available with the depository, foreign portfolio investors made net investments of Rs 19,541 crore in equities and Rs 2,492 crore in debentures from October 1 to October 30. The total investment thus stood at Rs 22,033 crore in October.

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“The availability of surplus liquidity in global markets is ensuring the flow of foreign funds into Indian equities,” said Himanshu Srivastava, Associate Director Manager, Morningstar India. In addition, the opening of the economy, resumption of business activities and better-than-expected quarterly results helped maintain investor interest, he said.

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He said that the scenario is changing at the global level and there are many factors which will move the direction of foreign flow. GRO co-founder and Chief Operating Officer (COO) Harsh Jain said that new cases of Kovid-19 are decreasing in India. This makes India attractive to investors in the recent times. He said that the next few months are going to be important. There are many big factors in the US like elections, vaccine availability, etc. that will make an impact.

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