The inflow into equity funds has been declining for five consecutive months. In July, mutual fund houses sold Rs 2,480 crore in equity schemes against an inflow of Rs 240 crore in June. The outflow in the cash segment was Rs 7,231.99 crore in July against Rs 3,689.67 crore in the previous month.
The big reason was profit booking and redemption pressure as the market rallied 50 percent from March lows, though FIIs were net buyers in July (Rs 2,490.19 crore) and June (Rs 5,492.95 crore).
Joseph Thomas, Head of Research at Emkay Wealth Management, said the outflow may stabilise over the next few months. « While we may see the current trend continuing in the shorter term, the course may be steadied on the availability of more macro data in the coming months. »
ALSO READ: Equity mutual funds see first monthly net outflow in 4 years; what lies ahead?
In July, mutual funds picked 10 fresh stocks, including Borosil, Hester Biosciences, Hindustan Foods, Novartis India, PTC India Financial Services, Shivalik Rasayan and Stylam Industries, Dolat Capital said. These are all smallcaps.
MFs also exited nine stocks in the month gone by. These are Aarti Surfactants, Bhageria Industries, Borosil Renewables, Clariant Chemicals (India), Consolidated Construction Consortium, Dhampur Sugar Mills, Flora Textiles, Geojit Financial Services and Monte Carlo Fashions, said Dolat Capital.
In the Nifty50 space, Adani Ports, Bajaj Finserv, Cipla, Dr Reddy’s Labs, Infosys, SBI, Sun Pharma and TCS maximum saw maximum buying by mutual funds in July, Dolat Capital said.
However, higher selling was seen in Asian Paints, Axis Bank, Bajaj Auto, Bajaj Finance, Bharti Infratel, GAIL, HDFC Bank, HDFC, HUL, Hero MotoCorp, Maruti Suzuki, NTPC, Reliance Industries and Titan Company, the brokerage added.
Systematic investment plan (SIP) inflows, too, have been dropping for the past many months, though inflow remained strong at Rs 7,830 crore in July against Rs 7,927 crore in June.
« The SIP has also been badly impacted in the current pandemic due to restricted cash flows for a number of households. Flows have succumbed to job loss pressures and poor market outlook and clarity, » said Narnolia.
But the flow into debt funds was strong at Rs 91,391 crore and most of these have been into funds with a short duration.
« Short duration funds, corporate bond funds, and banking and PSU funds continue to attract investor attention due to the hunt for superior risk-adjusted returns, as these funds have the most appropriate duration positioning and excellent credit risk profile, » Thomas said.
« It is very clear that investors are avoiding longer duration probably due to the expectation that there is volatility at the long end of the curve emanating from the issue of long-dated papers at the Gilts’ primary auctions. »
FIIs remained net buyers in equities, acquiring Rs 8,590.13 crore of shares in July but they redeemed debts worth Rs 1,833.40 crore.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are his own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Coronavirus Essential | India may have to wait longer for Russian vaccine; villagers tire of COVID-19 rules as rural cases surge
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form
or medium without express writtern permission of moneycontrol.com is prohibited.
Copyright © e-Eighteen.com Ltd All rights resderved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol.com is prohibited.
SOURCE: https://www.w24news.com
Laisser un commentaire