At Rs 2,480 cr, equity schemes see largest outflow in seven years

Investors move towards debt, gold ETF, eyeing pockets of safety

Equity mutual fund (MF) schemes saw the largest net outflows in seven years, with outflows reaching Rs 2,480 crore in July. Industry experts attribute it to investors’ lack of confidence on sustainability of the recent market rally amid the economic uncertainty.

This was the largest quantum of net outflows seen in equity schemes since October 2013, (Rs 3,542 crore), which was around the time of ‘taper tantrum’ seen in US.

Industry observers say there has been profit-booking with high net worth investors (HNIs) taking money off the table amid market run-up. “This can be attributed to profit-booking by HNIs and also some