Equity mutual funds continued to see inflows for the second straight month after the markets witnessed some consolidation on the back of the surging second wave of the COVID-19 pandemic. According to Sebi data, MFs put in a net amount of Rs 5,526 crore in equities in the month of April versus Rs 4,773 crore in March.

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Domestic investors had been taking out money from equity mutual fund schemes since July 2020 and March 2021 was the first month of inflows, the Sebi data showed. These outflows were mainly due to profit-booking by investors amid rally in stock markets.

Total assets under management (AUM) also rose to Rs 32.38 lakh crore in April versus Rs 31,43 lakh crore in the previous month.

"The month of April witnessed a surge in the number of COVID-19 cases that lead to some minor corrections in the markets, however, this was followed by quick recoveries as well. Mutual funds used this fall in the market to buy new stocks resulting in increased inflow in the equities even in the month of April-2021," Gautam Kalia, Head - Investment Solutions, Sharekhan by BNP Paribas told PTI.

However, MFs had invested over Rs 40,200 crore in the first five months (January-May) of 2020. Of this, Rs 30,285 crore was invested in March 2020.

Meanwhile, mutual funds put in nearly Rs 21,600 crore in debt markets in the month under review. Hybrid funds saw inflows worth Rs 8,641 crore and liquid funds saw inflows of Rs 41,507 crore.

However, SIP flows also witnessed a cut in April to Rs 8,590 crore in April from Rs 9,182 crore in March.

Foreign Portfolio Investors (FPIs), on the other hand, have pulled out net sum of Rs 9,659 crore from the Indian equity markets in April after investing Rs 10,482 crore in the preceding month.

They had invested Rs 25,787 crore in February and Rs 19,472 crore in January.

(Edited by : Aditi Gautam)

First Published:May 11, 2021 2:13 PM IST