As markets rise, investors book profits, causing net outflows in equity funds

The AUM of equity schemes increased by 3% to Rs. 1.61 lakh crore in February from Rs. 1.56 lakh crore in January helped by a 3% spurt in BSE Sensex in February.

Equity mutual funds suffered a second consecutive net outflow in February, 2012 to the tune of Rs. 2680 crore, shows the latest AMFI data. In January, 2012, equity schemes saw redemptions of Rs. 456 crore.

The assets under management of equity schemes inched up 3% to Rs. 1.61 lakh crore in February from Rs. 1.56 lakh crore in January due to a 3% spurt in BSE Sensex in February. So in spite of the net outflows in both January and February 2012, there was an increase in equity AUM.

“Markets rose so investors booked profit. Investors had seen volatility for so long. People had other tax saving avenues this time around so the interest in ELSS was subdued. There was some redemption in ELSS as the lock in period got over,” Sunil Subramaniam, Director - Sales & Marketing, Sundaram Mutual Fund.

Sales from all equity schemes stood at Rs. 3,607 crore while redemption stood much higher at Rs. 6,287 crore which resulted in Rs. 2,680 crore net outflows.

Except liquid, gold ETFs and fund of funds investing overseas, all other category recorded net outflows to the tune of Rs. 5707 crore.

The total assets under management of the industry went marginally up by 2% from Rs. 6.59 lakh crore in January to Rs. 6.75 lakh crore in February.

Among the new fund offers, FT India Feeder - Franklin U. S. Opportunities Fund collected Rs. 104 crore while Indiabulls Bluechip Fund mopped up Rs. 13 crore.

Net inflow/outflow