Despite the run-up in the equity market in November, mutual fund investors have opted to press the exit button in equity mutual fund schemes. November saw outflows of R1,304 crore, latest data from mutual fund industry body Amfi show.
This was the sixth consecutive month of outflows in equity funds, bringing the net outflows in the category for the year to Rs 12,702 crore. The average assets under management of the industry rose to R7.93 crore in November, up 3.2% from R7.68 crore in October.
Equity funds have seen outflows in 10 out of the 11 months this year. Substantial outflows were seen in February (R2,680 crore), August (R2,096 crore) and September (R3,306 crore). Besides these months, outflows were also seen in the months of January (R456 crore), March (R196 crore), April (R455 crore), June (R186 crore), July (R804 crore) and October (R1,725 crore).
According to industry observers, long-term investors booked profits in November as the market continued its upward trajectory.
“Investors who had been waiting to exit may have booked profits; it is pretty much the trend we have been seeing in the last few months,” said Dhruva Chatterji, senior research analyst, Morningstar India. The benchmark BSE Sensex gained 4.5% in November, buoyed by robust inflows from overseas investors, reform measures initiated by the government and upgrades from foreign brokerages such as Goldman Sachs. The BSE Sensex is up more than 25% in the year to date.
The money market/liquid funds saw inflows of R11,414 crore in November compared with inflows of R18,176 crore in October. Income funds saw modest inflows of R1,555 crore compared with inflows of R29,340 crore in October.
The Gilt category saw inflows of R1,006 crore in November against inflows of R1,018 crore in the preceding month.