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Equity Mutual Funds registered a third consecutive month of net inflows after it received a net inflow of Rs 10,082 crore in May 2021. This shows that amid the pandemic situation in the country, investors interest and confidence have been increasing continuously in Equity Fund Schemes.
As per the monthly report released by the Association of Mutual Funds in India (AMFI) for the May month assets under management (AUM) for equity schemes as of May 31 have risen to Rs 33.05 lakh crore from Rs 32.37 lakh crore on April 30.
Previous Month Data…
After eight consecutive months of outflows, equity mutual funds saw net inflows of Rs 9,115 crore in March 2021. In April, equity mutual funds saw an inflow of Rs 3,437 crore. Following the trend, in the May month of 2021, Equity mutual funds witnessed their highest monthly net inflows after February 2020 and registered a net inflow of Rs 10,082 crore.
What Experts Have To Say About This?
Experts and financial managers expressed that investors are actively showing their trust and confidence toward the growth of the Equity market in the coming future. Domestic institutional investors (DIIs) and retail investors kept the market buoyant in the last three months when FIIs were net sellers in April and May.
Himanshu Shrivastava, Associate Director – Manager Research, of Morningstar India, says that this net inflow in equity mutual funds is the outcome of improvement on the coronavirus situation with daily COVID-19 cases falling consistently, along with improving recovery rate, over the last few weeks. The recovering situation of country from the second wave of the pandemic has made investors more comfortable towards investing more.
Akhil Chaturvedi, Head of Sales & Distribution, Motilal Oswal Asset Management Company pointed out the Indian market is more broad-based now with more participants, thereby reducing volatility and vulnerability to sentiments of FIIs alone.
Let us Conclude!
The market is trading near all-time high levels. Experts point out the further direction of the domestic markets would depend on the monsoon, opening up of the economy in a phased manner and the pace of vaccination going forward.
After seeing the downfall in the covid cases and improving recovery rate, many of the states have eased restrictions gradually. Regarding this experts expect the demand environment to get better which can have a positive impact on the markets.
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(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).