Total mutual fund assets under management touches Rs 30 lakh crore although November data shows an outflow of Rs 13,000 crores from equities, but an inflow of Rs 45,000 crores into debt funds.
Radhika Gupta, MD & CEO of Edelweiss Asset Mgmt said, “It is a continuation of trend that we saw in October and there is still uncertainty, so those who wants to book profits at the end of once markets have valued are doing that and we have seen that increase in cycle. If it is a rebalancing of asset allocations it doesn’t come as a surprise.”
On outflows Gupta said, “The gross inflows are actually intact, you are seeing new fund offers that are coming to the market that are collecting money and it is not that it is category specific. If you look at the equity category, it is across the board. I think the hybrid category has been hurt the hardest. But I really think you have to reflect on the fact that markets did rally 10 percent in November and that gives a lot of portfolio rebalancing.”
“Given that markets have rallied, I would not be surprised if it continues and people continue to take money off the table. There will be some point at which this kind of dies down.”
Nithin Kamath, founder and CEO of Zerodha said, “We cater to the retail investors and at our end we have actually seen it trend up, we haven’t really seen a dip. So I think this is probably specific to a certain audience because in terms of newer customer’s addition to this direct mutual fund platform or in terms of additional AUM we are all picking at a fastest rate.”Watch the video for more