InvestorQ : Is it true that investors are continuing to redeem mutual funds in the month of October 2020 too?
Dilmini Mercia made post

Is it true that investors are continuing to redeem mutual funds in the month of October 2020 too?

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Dawn Cherian answered.
9 months ago
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The sage of equity mutual fund redemptions continues in India. In fact, for the month of October 2020, Equity mutual funds saw outflows Rs2725 crore.. This takes the total outflows from equity funds in the last four months to Rs.10,000 crore.

Remember that this is the fourth successive month of net outflows from equity funds. This is the space that is most relevant to the retail investors since the debt fund and liquid fund space are more confined to the corporate and institutional investors.

This redemption trend in equity funds is a trend that began in the month of July this year and has been consistently building up momentum. While SIPs are continuing, albeit at lower levels, it is the lump-sum investments that are getting hit.

The redemption pressure is visible in mutual fund investments as domestic financial institutions have been consistent sellers in the equity markets. This comes at a time when FPIs have been risk-on buyers in India as well as in other emerging markets.

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