Equity linked savings schemes (ELSS) have seen net outflows every month this calendar year, barring March. Altogether, these funds have lost Rs 3,984.6 crore of asset under management (AUM) year-to-date. With the tax-saving season upon us, many investors will want to invest in these funds. Experts say the recent outflows should not deter them.
Profit booking in bullish market
One reason for the outflows is profit booking. “The markets have been trending upward. So, investors who have completed the three-year lock in may have wanted to book some profits and allocate elsewhere,” says Kaustubh Belapurkar, director-manager research, Morningstar Investment Adviser