Equity funds saw interest returning from individual investors as they witnessed net inflows of Rs 1,300 crore for the first time after five months. The category had witnessed net outflows of close to Rs 8,000 crore since August 2009 after the ban on entry loads by the Securities and Exchange Board of India, according to Crisil FundServices.
Equity fund inflows in January 2010 were mainly on account of new fund offers of Rs 1,600 crore and equity-linked saving schemes (ELSS) as investors invested in tax- planning avenues in the last quarter of the financial year. Sales of equity funds rose to around Rs 9,000 crore in January (levels last seen in July 2009).
Assets under management (AUM) of equity funds, however, declined despite net inflows due to mark to market losses following the slide in the equity markets, said Crisil FundServices – which provides fund evaluation and research to the Indian mutual fund industry.
According to Krishnan Sitaraman, director of Crisil FundServices, “The entire amount redeemed by banks in December did not flow back into mutual funds in January as credit growth has picked up. Going forward, on full implementation of the 0.75 per cent CRR (cash reserve ratio) hike, bank exposure in mutual funds may see a slow return to a level lower than those seen in early December 2009.”
The month witnessed a rise in mutual fund AUM from Rs 665,000 crore in December 2009 to Rs 759,000 crore in January 2010 – a gain of Rs 93,500 crore or 14 per cent, owing to net inflows.
Mutual funds saw return of inflows of Rs 97,200 crore in January post the quarter-end outflows clocked in December. Among categories, income funds (predominantly ultra-short-term debt schemes) saw the highest net inflows of Rs 100,000 crore, while liquid and gilt funds were the only categories to witness net outflows of Rs 102,000 crore and Rs 260 crore respectively, according to Crisil FundServices.
Source: http://www.mydigitalfc.com/news/retail-investors-returning-equity-funds-says-crisil-963
Equity fund inflows in January 2010 were mainly on account of new fund offers of Rs 1,600 crore and equity-linked saving schemes (ELSS) as investors invested in tax- planning avenues in the last quarter of the financial year. Sales of equity funds rose to around Rs 9,000 crore in January (levels last seen in July 2009).
Assets under management (AUM) of equity funds, however, declined despite net inflows due to mark to market losses following the slide in the equity markets, said Crisil FundServices – which provides fund evaluation and research to the Indian mutual fund industry.
According to Krishnan Sitaraman, director of Crisil FundServices, “The entire amount redeemed by banks in December did not flow back into mutual funds in January as credit growth has picked up. Going forward, on full implementation of the 0.75 per cent CRR (cash reserve ratio) hike, bank exposure in mutual funds may see a slow return to a level lower than those seen in early December 2009.”
The month witnessed a rise in mutual fund AUM from Rs 665,000 crore in December 2009 to Rs 759,000 crore in January 2010 – a gain of Rs 93,500 crore or 14 per cent, owing to net inflows.
Mutual funds saw return of inflows of Rs 97,200 crore in January post the quarter-end outflows clocked in December. Among categories, income funds (predominantly ultra-short-term debt schemes) saw the highest net inflows of Rs 100,000 crore, while liquid and gilt funds were the only categories to witness net outflows of Rs 102,000 crore and Rs 260 crore respectively, according to Crisil FundServices.
Source: http://www.mydigitalfc.com/news/retail-investors-returning-equity-funds-says-crisil-963
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