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Equity MFs see outflow of Rs 3,225 cr in Oct

The mutual fund industry saw net inflows of Rs 66,326 crore in October…

The mutual fund industry saw net inflows of R66,326 crore in October even as equity oriented-schemes continued to see net outflows.

According to recent AMFI numbers, the equity schemes saw net outflows rise more than 50% month-on-month at R3,225 crore taking the year-to-date tally to R8,579 crore. In September, the net outflows were at R2,116 crore.

According to experts, long-term investors have exited their portfolios to book profits. ?The 21K mark on Sensex was the exit signal for many investors. While the sharp rally in markets has triggered outflows, it has also pushed up assets under management (AUM) numbers of the equity schemes,? said Srikanth Meenakshi, founder and COO, FundsIndia.com. In the last two months, the Sensex has gained 15%.

Equity funds? AUM gained more than 6% in October at R1.49 lakh crore. At the end of September, AUM stood at R1.40 lakh crore.

Meanwhile, Gold exchange-traded funds (ETFs) remained under redemption pressure as the recovery in gold prices provided exit opportunity.

?The sharp correction seen in the earlier part of the year was unexpected. So, investors are exiting to cut losses or recover their capital,? said Meenakshi.

The AUM slipped to four-month low of R9,894 crore with net outflows amounting to R288 crore. In year-to-date, Gold ETFs have seen net outfl-ows of R1,514 crore. Amid global prices of gold firming up, MCX spot prices touched near two-month high of R31,880 per ten grams on October 25.

Mutual fund investors continued to favour liquid and money market schemes as the category saw net inflows of R67,515 crore taking the year-to-date figure to R88,466 crore. The AUM for the category rose 54% month-on-month to R1.89 lakh crore.

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First published on: 10-11-2013 at 03:33 IST
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