Indian equity markets have been on a downtrend in the past few trading sessions due to sustained pullout by FPIs but Indian mutual funds are seeing steady inflows, according to various participants.
According to industry estimates, mutual funds ,may receive inflows in the range of R3,000 – 5,000 crore in the month of April. A CEO of a top fund house said, “There have been redemptions from the mutual funds, but inflows far outweigh the outflows. We are seeing several high net worth individual (HNIs) are moving out from equity funds, while retail continue to invest largely through systematic investment plans (SIPs).”
Dinesh Kumar Khara, MD and CEO at SBI Asset Management Companies (AMC) said, “Equity markets have been unstable largely because of weak corporate earnings and outflows from foreign investors. Markets have come off from the peaks and many investors have booked profits. However, from the domestic point of view, we are seeing net inflows into our equity schemes despite weak environment.”
Financial year 2014-15, had turned out to be one of the outstanding year for Indian mutual fund industry. Equity funds continued to attract money and in March it saw net inflows of R7,032 crore, shows the data from Association of Mutual funds in India (Amfi). For FY15, equity funds saw net inflows of over R68,000 crore on the back of renewed interest from the retail investors and series of equity fund offering from various fund houses.
Jimmy Patel, CEO at Quantum Mutual Fund says, “I think this time its opposite, as foreign players are selling Indian equity, Indian investors are buying through mutual funds. Despite shot-term uncertainty, long term story of Indian remains strong and investors can earn good returns in next three-five years.”
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