Investor inflows into equity mutual funds (MFs) are showing signs of moderation after touching their lifetime highs last year. Equity-oriented MFs have attracted inflows of Rs 44,772 crore, roughly half of Rs 90,603 crore received last year.
Industry players say frequent bouts of correction and lacklustre returns this year have impacted investor sentiment towards the equity market. They add a lot of investors are preferring debt schemes due to low-risk attractive returns.
G Pradeepkumar, chief executive officer (CEO) of Union KBC Mutual Fund, says, “Markets had turned quite volatile and there has been an increase in redemptions. Further, lump-sum investments seen in 2014 and 2015 have taken a back seat. The bulk of the inflows has come through systematic investment plan (SIP) route. High net-worth individuals (HNIs), too, have turned wary towards equities.”
