Indian equity mutual funds continued to see net inflows for the 14th straight month in June, delightful news for fund managers, reports fe Bureau in Mumbai. Given how the stock markets have been roiled by the events unfolding in China, however, investors who bought into equity schemes might be somewhat worried. Nevertheless, at $1.92 billion, this was the best monthly performance since January 2008, according to Deutsche Bank Research and took the average assets under management to R3,72,300 crore ($58.3 billion). Propelled by persistent inflows, domestic mutual funds have been net buyers in the market and in June picked up stocks worth R9,450 crore ($1.5 billion), the highest purchase since April 2007. AMFI puts inflows into equity schemes at over R32,200 crore in the last three months alone. Sundeep Sikka, president and CEO, Reliance Capital AMC, said the biggest change in the last 14 months had been the increased retail activity. “From real estate and gold, investors are now parking their savings in equity schemes,” Sikka observed.
Deutsche Bank noted in its report that domestic inflows would be able to provide a strong offset to draining foreign portfolio investors case of a lift-off in the interest rates by US Federal Reserve.