Despite equity markets declining around 3.5% in April, equity mutual funds continued their positive momentum and saw net inflows of R10,406 crore in April. According to the data from, Association of Mutual Funds in India (Amfi), mutual fund industry saw net inflows of R1,10,569 crore in April 2015.
The highest inflows were seen in liquid/money market schemes at R1,01, 592 crore. “In the month of March there were massive redemptions from liquid schemes as banks, financial institutions and corporates redeem their fund to meet tax obligation. But now again short term money has entered the liquid schemes,” says a debt fund manager.
However income funds saw net outflows of R2,510 crore in April 2015.
Even gilt funds saw inflows of R164 crore in April, 2015 and officials in the industry believes that flows will continue into gilt funds as interest rates are expected to fall from current levels.
“In the last few sessions, while foreign players have been net sellers, domestic players are on the buying spree. This suggets investors are still holding their investments and not selling in a hurry. We believe that even if markets remain volatile we may continue to see incremental flows from retail investors,” said the CEO of the top fund house.
Apart from equity funds, equity linked saving schemes (ELSS) also saw inflows of R178 crore in April, 2015. Positive equity markets and improved sentiment among retail investors led equity funds to witness inflows of over 68,000 crore in financial year 2014-15.
Balanced funds also saw inflows of R1,183 crore in April, 2015. While gold exchange traded funds (ETFs) continued its slide and saw net redemptions of R69 crore in lats month. In the month of April 2015, 5 new close ended equity schemes collected R615 crore launched by various fund houses.
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