In the current financial year, equity funds mobilized over Rs 30,817 crore per month, on average
The volatility in the Indian equity markets has led to a slowdown in mobilization by equity funds, with inflows trending downward in the past few months as lump-sum investors have stayed away due to lofty valuations.
According to data from the Association of Mutual Funds in India (Amfi), equity funds mobilized Rs 28,671.39 crore in October, against Rs 36,656.66 crore in September. In the current financial year, equity funds have mobilized over Rs 30,817 crore per month on average.
Between July and September, mobilization rose above Rs 30,000 crore each month as investors favored the new fund offer (NFO) route— inflows touched Rs 42,100 crore in July, the highest so far this year, as equity NFOs collected Rs 13,709 crore.
“Investors have been investing only through NFOs in the last few months. The industry has been aggressive in pushing NFOs and I believe this will be a big worry if there is a sharp correction in Indian equities,” said a senior industry official.
Since July, fund houses have raised over Rs 27,151 crore through NFOs in equity funds alone. The amount increases to Rs 57,000 crore in the last four months if NFOs of all categories of schemes are considered.
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