Mutual Fund data for January is along expected lines with outflows at around Rs 12,000 crore in the equity funds. Radhika Gupta, MD & CEO of Edelweiss Asset Management, said that she expects equity funds to continue to see outflows.

"As markets keep rising, I think there are fair amount of wealth managers and advisors who are giving calls and they could be very valid asset allocation calls to take some money off the table. You always see some amount of profit booking when people feel their NAV has come to par; you never see it when NAVs are at a loss. So, I don’t expect this to ebb for some time,” she said in an interview to CNBC-TV18.

Hybrid funds witnessed inflows of around Rs 2,141 crore versus outflows of Rs 5,932 crore on a month-on-month (MoM) basis. Gupta said it is encouraging to see the hybrid category doing well and she expects the trend to continue.

"We have been big believers in the hybrid category and it is encouraging to see in the data that has come for the last few months that this is one of the hybrid categories that is getting net positive flows and probably the highest amount of gross flows. I think it will continue to do well simply because it makes sense for investors in a time when markets have rallied. So, you don’t want to miss out on the upside, but given the levels of markets, we are seeing an increase in interest even in the number of investors coming into the category, she said.

Watch video for more.

(Edited by : Priyanka Rathi)