According to the latest market news, “Equity mutual funds are seeing tremendous inflows lately, but these are accompanied by strong outflows- Economic Times.” Steady increase has been witnessed Data from AMFI, which displayed outflows in Equity Mutual Funds.
- Outflow in December 2016 was of Rs 7,932 crore.
- Outflow in March 2017 jumped to Rs 20,658 crore.
- The rise shows increase of three times the outflow in last four months
Experts are coming forward with a number of reasons supporting the rise in market, which is now touching its all time high. “There are investors who panic in such situations. Markets being around its all time high might push a lot of investors to sell their schemes,” says Rajiv Thakkar, Chief Investment Officer at PPFAS Mutual Fund. “There are some investors who sell their schemes at such times because of panic and then there are others who tend to time the market and get in after a correction. Timing the market is not possible, but there are investors who tend to try it during such situations in the market,” says Thakkar.
It is also believed that these outflows are result of fundamental issues. There are investors, who have inclined interest towards short term investment and sell funds when market offers best opportunities. Such equity mutual funds investors often invest without any proper goal or plan, holding higher tendency to sell schemes high situations.