Stock markets are volatile due to fears of inflation, rising crude oil prices and recession. As a result investors have reduced their investment in equity mutual fund schemes. In June, Rs 15,497 crore flowed into equity mutual fund schemes. This is a decrease of Rs 3,020 crore compared to May.
According to Association of Mutual Funds of India (AMFI) monthly data, the number of new SIP account openings has been declining since April. SIP contribution in June was Rs 12,275 crore. Last May it was Rs 12,286 crore. However, for 9 consecutive months since September 2021, SIP investment has been hovering above the Rs 10,000 flag.
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Assets under management of mutual fund companies as on June 30 stood at Rs 35.64 lakh crore. This was down 4.2% from May. Similarly, Rs.92,000 crore has been withdrawn from loan schemes. Corporate and institutional investors took cash at the end of the quarter for early tax payments. This has happened due to rise in interest rates etc.
Commenting on the decline in mutual investment, Amfi CEO said: Institutional investors are concerned about rising interest rates. They usually say wait and see. The high volatility of the market is contrary to the sentiments of investors. Investors will take a cautious stance by looking at where the interest rate stabilizes, he said.
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