Equity mutual funds (MFs) have seen a substantial increase in net inflow over the last two months, with sales of equity products nearly doubling during the period.
“For the last two months, equity funds have been attracting more money. Hopefully, this trend will continue,” Association of Mutual Funds in India (AMFI) deputy chief executive V Ramesh said at the ICC Mutual Fund Summit.
Ramesh said that over the last two years, debt funds had seen greater inflows but, in the last two months, equity products have attracted a lot of money from retail investors.
“During the last two-three months, equity has also seen a lot of inflows. From April, on an average, every month sales of R3,000 crore have happened in equity products but, in the last two months, it went up to R6,000 crore. The consequent redemption is also less,” he explained.
AMFI says retail investors might get a ‘little more comfort’ going ahead with the equity market looking somewhat better, and they should start investing more through systematic investment plans (SIPs).
Equity funds saw net inflow of R105.9 crore in December last year, the highest since September 2011’s R140.1 crore.
Industry analysts say the poor performance of gold and real estate has also pushed investors to look at equities.
On debt mutual funds, Ramesh said the process of standardisation of valuing debt products has started.
Earlier, every fund house was independently valuing debt funds they had invested in. But now, the industry has started a standard practice for this.