Mutual funds made strong purchases in the primary market in January. During this period, he spent Rs 1200 crore in different IPOs. Out of this 1200 crores, the largest share came from the Indian Railway Finance Corporation (IRFC). In this IP, MF added 927 crore rupees in January 2021. After this, Rs 140 crore came in the share of indigo paint. While 120 crore was invested in Home First’s IPO. These figures are based on Edelweiss’s paper.
IRFC, HCL Technologies, Axis Bank, Asian Paints, Larsen & Toubro and HDFC were the stocks in which mutual funds bought strongly in January. On the other hand, selling was seen in Reliance Industries, Infosys, Bharti Airtel, Power Grid Corporation and TCS.
Mutual fund telecom giant Bharti Airtel was a net seller. Whereas FPI increased its investment in the telecom sector in the month of January. Equity mutual funds sold Rs 9253 crore in January. This was the seventh consecutive month of selling in equities. The main reason for this was the large withdrawal in the recently created flexi fund category.
According to data from the Association of Mutual Funds in India, investors sold Rs 35904 crore from debt funds in January after investing Rs 13863 crore in December. In January, the mutual fund industry saw a withdrawal of Rs 3586 crore in all segments. In December, inflows of Rs 2968 crore were seen in hybrid and other schemes.
In the last 3 months, mutual funds have sold Indian equities worth Rs 70,000 crore. Between 31 October 2020 and 10 February 2021, the benchmark index Nifty TRI has seen a 30 per cent increase. While 10 equity mutual fund schemes have given 45% returns. There are 2 schemes related to UTI and ICICI AMC.
Narnolia Financial Advisors says record highs have been seen in Indian markets and this selling of mutual funds has come due to profit recovery. Investment through SIP has been lower than the previous month. But currently it remains above Rs 8000 crore. These are signs of moderation in the SIP market and these figures will stabilize in the coming months. Normoli Financial Advisors has further stated that in the last 3 months, all the funds have recategorized themselves from multi-cap to flexi-cap to follow the rules related to SEBI multi-cap funds.
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