Equity MFs see Rs 9,115 crore inflows; debt funds record Rs 52,528 crore outflows
For the financial year 2020-21, equity fund flows remained net negative as outflows persisted from July 2020 to February 2021. The outflows were triggered by a bounce-back in the market post Covid crash that drove investors to book profits or rebalance their portfolios
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Equity mutual funds recorded inflows of Rs 9,115 crore in March, breaking eight-month losing streak, as investors may have entered equities on dips. Barring two - Multi Cap Fund, Contra Fund -- rest of the equity categories received positive flows.
"While it's too early to draw conclusions, it seems equity investors waiting on the sidelines for a market correction, have started making allocations taking a long-term investing view in equities, as should be the case. Additionally, the quantum of redemptions were lower for the month, suggesting profit booking/reallocation to other asset classes slowed down," says Kaustubh Belapurkar, Director - Manager Research, Morningstar India.