Mutual Fund Industry: The rally started before Diwali in the stock market is going on. In February, the stock market created an all-time high of 52516.76. But on the other hand, in the month of February, equity mutual funds have withdrawn money from the market for the 8th consecutive month. In February, the mutual fund sold Rs 10,468 crore from equity. Most withdrawals have been made from the Flexi cap category. The overall outflow of the mutual fund industry in all categories has been Rs 1,843 crore. However, even after this, the asset under management has increased.
Highest withdrawal from Flexi cap fund
The maximum withdrawals were made from the Flexi Cap Fund in February. Mutual funds pulled out Rs 10,430.90 crore from this category. While Rs 1,378.51 crore was withdrawn from the Contra Fund. An outflow of 1000 crores has also been seen in LORGCAP. While the investment of 4,077.94 crores has come in multi-cap segment.
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When did you get out of equity?
Mutual funds pulled out Rs 9,253 crore from the stock market in January. At the same time, in December, Rs 10,147 crore was withdrawn from equity. The month of November saw an outflow of Rs 12,917 crore from equity mutual funds and Rs 2,725 crore in October. In September, mutual funds pulled out Rs 734 crore from equity, Rs 4,000 crore in August and Rs 2,480 crore in July. While the inflow of 240.55 crore rupees was seen in this segment in June.
Why are you withdrawing money from the stock market?
In fact, there is a continuous rally in the stock market. Since November 2020, the days that have come on the market are creating new records. Many stocks are at their record highs or 1-year highs in this boom. In such a situation, profit recovery is also a reason to withdraw money from the stock market. Second, fund houses are cautious given the record valuation of the market. The possibility of further correction has increased. Therefore, the shares in which they have got profit, they are being sold. However, due to lack of liquidity, there is a rally in the market and there is no effect of selling of mutual funds.
Investment in debt mutual funds
Talking about February, there has been some inflow in the date segment. The debt segment has a net investment of Rs 1735 crore in February. While in January, the mutual fund pulled out Rs 33,409 crore from this segment.
AUM increased to 31.64 lakh crore
Talk about the ELSS category, Rs 10,468 crore was withdrawn from it in February. Whereas in January, mutual funds pulled out Rs 9,253 crore from it. Investments in Gold Exchange Traded Funds (ETFs) in February amounted to Rs 491 crore, compared to Rs 625 crore in January. The AUM of mutual funds increased to 31.64 lakh crore in February from 30.5 lakh crore in January.