Savvy investors turns to Equity mutual funds in the month of August

September 15, 2011   ·   0 Comments

Equity mutual funds attracted Rs 1,942 crore in net inflow in August, even as the outflow from the debt and money market funds led to a decline of 4% in the domestic mutual fund industry’s total assets under management to Rs 6.97 lakh crore.

www.stockssavvy.comThe near-17% fall in markets over the past nine months has given investors an opportunity to buy equities at cheaper valuations. Savvy high net worth investors have begun investing in markets; many of them are now investing in markets through mutual funds.

Mantri said money had started coming in “trickles” through systematic investment plans. “Many investors in fixed income space have shifted their investments to bank deposit schemes and other debt instruments; several others are allocating money to NCD (non-convertible debentures) issuances that have hit the market recently. This, in a way, accounts for the money that has moved out of liquid and income funds in August,” he said.

Balanced funds, ELSS and gold exchange-traded funds brought in Rs 210 crore, Rs 44 crore and Rs 494 crore respectively. Income funds and liquid funds, however, witnessed redemption worth Rs 17,000 crore during the month. retail investors made a beeline to the NCD issuances of Shriram Transport, India Infoline and Shriram City Union Finance. Shriram Transport, which issued NCDs to raise 1,820 crore in June this year, collected about Rs 1,300 crore from retail investors. The issuances of India Infoline and Sriram City Union Finance were also received well.

Gold ETFs improved their luster further, as these have given a return of 47% over the past year while equity funds have given a negative return of 10-11%. Net investments in gold ETFs and gold feeder funds have gone up from Rs 3,581 crore in January to Rs 7,578 crore in August.

Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

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