MFs sell shares worth Rs 2,700 cr in April

Tags: Mutual Funds
Continuing their selling spree for the 8th month in a row, mutual funds offloaded shares worth about Rs 2,700 crore in April on redemption pressure.

On the other hand, they pumped in nearly Rs 50,000 crore in the debt market during the month.

As per the Securities and Exchange Board of India (Sebi) data, mutual funds offloaded a net amount of Rs 2,698 crore from equities.

This was the 8th consecutive month of net outflows by mutual funds after they invested a net sum of Rs 1,607 crore in the stock market in August.

Since the beginning of the year, mutual funds have sold shares worth Rs 10,450 crore. However, they have taken a bullish stance on the debt market during the period and have made a net investment of Rs 2.57 lakh crore.

"Mutual funds have seen a rise in inflows mainly due to gains in debt fund. However, equity funds have been facing redemption pressure for some time," a market participant said.

"Equity fund investors have been pulling out at higher levels of the market, indicating their lack of confidence in the market's ability to sustain at these levels," he added.

Analysts are however optimistic about equity schemes in 2014 on hopes that a stable government after the general elections this month will help boost stock markets.

A mutual fund is an investment vehicle with a pool of funds collected from investors to buy stocks, bonds, money market instruments and similar assets.

At present, there are about 1,638 schemes under mutual funds, of which 1,178 schemes (72 per cent of the overall schemes) were income or debt oriented while about 363 schemes (22 per cent of total schemes) were growth or equity related.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • India would have done well not to supress the 'Bofors interview'

    Bofors is one case that refuses to go away two-and-half decades after it grabbed public attention and became a byword for political corruption, claimi

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Varun Dutt

Biogas Potential in India

Biogas is a form of renewable energy produced from organic ...

Zehra Naqvi

Dignity of labour is dignity of life

M Rafi Khan, a retired police IG, used to ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture