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Investors are getting away from equity mutual funds, are putting money out here

Mutual Funds: Investors’ interest in Equity Mutual Funds is decreasing. Investment in equity mutual funds declined in August 2021 as compared to July 2021. Investors’ interest in equity mutual funds is decreasing at a time when the stock market is touching new heights.

According to the data of Association of Mutual Funds of India (AMFI), equity mutual funds had net inflows of Rs 8,056.80 crore in August. This is 61.15% less than in July. Equity funds had a net inflow of Rs 20,742.77 crore in July. However, despite the steep fall in investment, the flow of investment remains positive. The pace of redemption of investors was also seen more in August. In July, investors had withdrawn Rs 17,831.65 crore. Whereas in August, Rs 23,144.89 crore was withdrawn.

Investors Investing in Balanced Advantage Funds
Experts consider several reasons behind the declining trend of investors in equity mutual funds. However, there is another reason for this. The speed with which investors are withdrawing money from equity mutual funds. Equally, they are investing in New Fund Offer (NFO) of Balanced Advantage funds. This strategy can be especially beneficial for retail investors. Balanced Advantage Funds have low risk appetite. Apart from this, investment in equity mutual funds also seems to be declining due to profit booking by investors.

Let us tell you that SBI Balanced Advantage Fund was launched in August this year. An investment of Rs 14,551 crore was made in this. It was a hybrid scheme, in which investment is made in both debt and equity. Earlier in July, ICICI Prudential Flexi Cap Fund was launched. It was an equity scheme and it raised Rs 9,808 crore that month.

(Here ABP News is not giving any investment advice in any fund. The purpose of the information given here is to inform the reader only. Take expert advice before depositing money in any scheme)

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