Graphic: Redemption-to-inflows ratio for equity MFs drops

On an absolute basis, the gross redemption figure hasn't seen a sharp decline

While net inflows into MF schemes have been strong this year, there are also a set of investors who have been redeeming their investments. On a year-to-date basis, gross redemptions stood at Rs 1.06 lakh crore. Part of this could be profit-taking and part of it reallocation. Equity schemes have seen inflows of over Rs 86,000 crore this year.

However, a decline in gross redemptions as a percentage of net inflows is a positive.

In January, the redemption-to-inflows ratio stood at 72.3. This weighed on net inflows, which stood at just Rs 4,880 crore. Last month, the ratio dropped to 54.6, helping