Equity mutual funds may see net inflows for fourth straight month

Market participants say that redemption pressure has slowed down, and new sales have gone up substantially in the month of June

Equity mutual funds are likely to have registered net inflows for the fourth consecutive month in June. Strong returns over the previous year and positive news on the vaccination front encouraged investors to continue with equity MFs.

Though official data has not yet been released, market participants say redemption pressure has slowed, and new sales rose substantially in June.

Sunil Subramaniam, managing director (MD), Sundaram Mutual, said, “Initially during the start of the second wave there were some concerns. But the matter was quickly sorted out and there is good news on the vaccination front. Overall, the economy is likely to bounce