Despite equity markets appreciating 50% between April 25 and August 29
Once bitten, forever shy. Retail investors are firmly unwilling to patronise equity mutual funds even though the equity markets have risen by a whopping 50 per cent between April 25 and August 29, 2003.
The market capitalisation of stocks traded on the Bombay Stock Exchange (BSE) increased a whopping Rs 3,44,617 crore since April 25, the day when the Sensex tanked to a six-month low.
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And yet net inflows into the equity schemes of the domestic mutual funds was a paltry Rs 1,121 crore between March 31 and August 31, 2003.
Though there was an increase of Rs 6,752 crore in assets under management (AMU) of equity funds in the said period.
Out of this, Rs 5,631 crore was on account of a rise in market value of portfolio which followed the stock market rally.
The balance amount (Rs 1,141 crore) is actually the net inflow of investors