Equity MFs bring big money with stock markets on a high
It has been raining money for equity mutual fund schemes, with markets hitting ever new highs. Inflows into the equity schemes in the June quarter increased to ₹19,508 crore against an outflow of ₹4,672 crore in the March quarter.
Interestingly, smaller mutual funds such as PGIM India and PPFAS reported a surge of 48 per cent and 33 per cent to ₹3,218 crore and ₹9,964 crore, respectively, in average equity assets in the June quarter while that of Canara Rebaco and Edelweiss was up 23 per cent and 12 per cent at ₹19,850 crore and ₹4,535 crore, respectively. Equity assets of Invesco and Mirae Asset were also up at ₹18,563 crore (11 per cent) and ₹63,908 crore (12 per cent).
Among large fund houses, Axis Mutual Fund and HDFC MF topped the table with the equity assets at ₹1.06-lakh crore (up 9 per cent) and ₹1.04 lakh crore (5 per cent), respectively, while ICICI MF and SBI MF occupied the third and four slot with ₹1.02 lakh crore (7 per cent) and ₹1.01 lakh crore (8 per cent), according to analysis by Fortune Planners Investment, an independent financial service provider.
Overall, the equity asset in the June quarter increased 7 per cent to ₹10.35-lakh crore against ₹9.68-lakh crore in the March quarter.
To remain strong
Mahesh Patil, Chief Investment Officer, Aditya Birla Sun Life AMC, said inflows into equity funds will continue to remain strong as other alternative investment avenues have disappointed investors the last few months.
In fact, retail investment has been acting as a counter-balance to foreign investors booking profits, he said.
Some retail investors have been booking profit from their direct equity market investments and parking funds in MFs. Realising this, fund houses have made 50 New Fund Offers in the last six months to raise over ₹35,500 crore against 68 NFOs in the whole of last year raising ₹40,450 crore.
Sameer Kaul, MD and CEO, TrustPlutus Wealth, said despite the several initial public offerings, people are investing heavily in mutual fund NFOs, which are also aggressively marketed by banks and wealth managers.