FY14 is the fifth consecutive year of net outflows by mutual funds in equities after pumping in Rs6,985 crore in 2008-09
Mutual funds (MFs) offloaded shares worth more than Rs14,000 crore during 2013-14 fiscal, making it the fifth consecutive year of net outflows, says data compiled by Securities and Exchange Board of India (SEBI).
As per the latest data compiled by the market regulator, mutual funds sold shares worth Rs14,208 crore during FY14. However, this was lower compared with shares worth Rs22,749 crore offloaded by MFs during FY2012-13.
The financial year ended 31 March 2014, also marked the fifth consecutive year of net outflows by mutual funds in equities after pumping in Rs6,985 crore in 2008-09.
During the last five financial years till 2013-14, MFs had cumulatively sold shares worth over Rs68,000 crore from equities.
In comparison, foreign institutional investors (FIIs) made a net inflow of nearly Rs80,000 crore in equities in 2013-14.
However, FIIs kept away from the debt market and pulled out over Rs28,000 crore during the fiscal due to weakness in the Indian currency.
During 2013-14, MFs were net sellers of equities in 10 out of 12 months, while May and August were the only months to record net inflows. MFs had put in Rs3,508 crore and Rs1,607 crore in May and August, respectively.
The huge sell-off during the year coincided with a rise of 3,550.50 points or 19% in BSE 30-share Sensex.
On the contrary, mutual funds took a bullish stance on the debt market during 2013-14 with a net investment of Rs5.43 lakh crore.
At present, there are about 1,540 schemes under mutual funds, of which 1,090 schemes (71% of the overall schemes) are income or debt oriented, while about 350 schemes (23% of total schemes) are growth or equity related.