Mutual fund investors have shown resilience and faith in domestic equity markets at a time when foreign investors seem to be looking elsewhere. Since January to April-end 2018, net inflows in domestic equity mutual funds are slightly over Rs50,000 crore compared to nearly Rs29,000 crore for the same period last year. This comes on the back of regular systematic investment plan (SIP) inflows increasing to Rs7,119 crore in March 2018 as compared to a monthly inflow of Rs4,335 crore in March 2017.
The number is significant given that while Rs43,600 crore was invested in equity mutual funds in March 2018, as much as Rs39,000 crore flowed out, leaving a net inflow number of Rs6,600 crore. The lump sum redemptions, experts said, had more to do with the impending implementation of long-term capital gains tax starting April 2018. With continued SIP support and additional buying, net inflows in April shot back up to around Rs12,400 crore for equity-oriented schemes.
