Equity mutual funds have received strong inflows since April 2014. Investors have poured in a massive Rs 2.22 lakh crore since April 2014 in equity funds.
With Sensex at it all time peak, investors have poured in a record Rs 41,000 crore in the first six months of 2017 in equity mutual funds compared to Rs 8,813 crore over the same period last year. In the month of June alone investors put in a net Rs 7,453 crore in equity funds.
Equity mutual funds have received strong inflows since April 2014. There has been a net inflow in every month barring just two months. Investors have poured in a massive Rs 2.22 lakh crore since April 2014 in equity funds.
"The great thing about the equity inflows is that it is coming a sustainable manner and at the right time in the right way. SIPs (systematic investment plan) in excess of Rs 4,500 crore per month is the biggest contributor to these inflows. While inflows through new fund offers (NFOs) account for only around 10 per cent of the inflows in equity funds," says Pradeep Kumar, CEO, Union Mutual Fund.
"We are seeing a large interest from smaller cities where the penetration is low. Given the overall low penetration of the financial products, we have a long way to go," says Navneet Munot, Executive Director & Chief Investment Officer, SBI Mutual Fund.
Market experts believe there is a change in the behaviour of the investors and they are investing for the long-term without worrying about corrections. In fact, they are investing more money during market corrections. Therefore the inflows are likely to continue even if there is any short-term correction in the market.
"Maturity has been seen in investors over the past two-three years. During demonetisation, when markets corrected we saw more inflows coming in equity funds," says Munot.
"While earlier investors used to buy during market rallies and sell during market correction but the behaviour is changing overtime as SIPs are being maintained as a long-term savings instruments. More than 50 per cent of the SIPs that are coming are for more than five years says," says Kumar.