Mutual funds selling spree continues; withdraw 16,306 cr from equities in February on profit booking
The HinduMutual funds pulled out ₹16,306 crore from equities in February, making it the ninth consecutive monthly outflow as small investors booked profit amid a rally in stock markets. Gopal Kavalireddi, head of research at FYERS, said this trend of redemptions could continue till the time stock market rally slows down and consolidates, giving investors the opportunity to deploy their profits into longer time frame instruments like mutual funds. Initial success in the rising markets and the poor performance of many mutual funds over the last few years have further induced them to withdraw from equity mutual funds, he added. “Buoyed by this disbelief rally in stock markets, retail investors continue to redeem their mutual funds to shore up their gains of the last one year,” FYERS’ Mr. Kavalireddi said.