As equity markets saw steady gains in financial year 2018, inflows into equity mutual fund schemes stayed robust but tumbled in March as investors preferred to book profits possibly to avoid the long term capital gains (LTCG) tax effective from 1 April.
According to data provided by Association of Mutual Funds in India (AMFI), net inflow into equity mutual fund schemes was at Rs1.69 trillion in FY18. However, flows into equity mutual fund schemes fell 59% to Rs6,657 crore in March from Rs16,268 crore in February. The amount compares to Rs8,216 crore in March 2017, data by AMFI showed.
