Equity mutual funds had recorded net inflows of over Rs 1.7 lakh crore in financial year 2017-18, with a monthly average of around Rs 14,200 crore. But in the first two months (April-May) of the current fiscal, inflows into equity funds have slowed down and stood at Rs 11,171 crore and Rs 11,350 crore respectively, data from Association of Mutual Funds in India (Amfi) showed.
Market participants say that the slow pace of inflows into equity funds (also includes equity-linked saving schemes-ELSS) is largely to do with the volatility in the equity markets. In the month of March this year, inflows in equity mutual were at Rs 6,657 crore — lowest in 13 months as investors redeemed funds to avoid the tax on long-term capital gains (LTCG) that was effective for transactions done from April 1.
