Equity funds see net outflows of Rs 2116 crore in September on profit booking

Owing to profit booking and new issues of tax- free bonds, equity funds and liquid funds collectively witnessed huge outflows of Rs 30,135 crore in the month of September 2013. AMFI data shows that equity funds saw net outflow of Rs 2116 crore while liquid funds lost Rs 28019 crore in this period.

In August, both equity and liquid funds saw net inflows of Rs 467 crore and Rs 32123 crore respectively with S&P Sensex dropping by 4% during that period. Except fund of funds which received net inflows of Rs 104 crore, all other categories saw total outflows of Rs 33910 crore in September. International funds had received healthy inflows due to depreciation in rupee against dollar in September. According to Value Research, these funds have delivered 18% average return in one year.

“Equity funds have seen net outflow because of profit booking. As the S&P BSE Sensex hovered around the psychological mark of 20,000 points during September, gross redemptions were high. We may also see some redemption pressure in October due to positive movement of market and festival season. Also, people redeemed their investments from liquid fund since they moved towards tax free NCD issues,” said Nikhil Kothari, Etica Wealth Management.

Gold ETFs and gilt funds saw net outflows of Rs 294 crore and Rs 1546 crore respectively.

Among the new fund offers in September, ICICI Prudential Global Stable Equity Fund mopped up Rs 74 crore while IDBI Tax Saving Fund (ELSS) collected Rs 20 crore. Income schemes launched in September garnered Rs 10,519 crore.

The industry’s AUM went also down marginally by 3% from Rs 7.66 lakh crore in August to Rs 7.45 crore in September.