Mutual fund managers churn portfolios, go slow on purchase of equities

With benchmark indices hovering near record highs, mutual fund managers have slowed down their equity purchases.

Fund houses bought shares worth Rs 38.1 billion in August, the lowest since February 2017. This is similar to purchases of Rs 39 billion made last month. Net investments dropped 58 per cent over June’s purchases of Rs 92 billion, and 67 per cent lower than the one-year monthly average of Rs 103 billion.

Experts suggest that gross inflows have slowed down as wealthy investors, who are more sensitive to market swings and volatility, have started churning their portfolios.

In July, equity funds (including ELSS) witnessed net