Rs 1,690.48 crore: The net inflows into equity mutual funds in November.
- Net inflows into equity mutual funds fell to Rs 1,690.48 crore in November, according to figures released by the Association of Mutual Funds in India (Amfi).
- This was 72 per cent lower than the Rs 6,037.78 crore received in October 2019. Redemptions from mutual funds rose to a 20-month high of Rs 16,216.66 crore.
- The key reason for the drop was profit booking on the part of investors, as markets rose in November. The Sensex was up 1.91 per cent that month.
- The silver lining in all this was that the money collected through systematic investment plans (SIPs) rose to a record high of Rs 8,272.87 crore.
- This indicates that investors who are investing systematically have continued to do so, in order to meet their long-term goals. They have not allowed themselves to be swayed by short-term market movements.
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A few links for further reading
Invest and emigrate
The great Indian dream of settling abroad is achievable if one has a few crores to invest. Rich nations offer a variety of investment options in a quid pro quo arrangement: immigrants get a better quality of life and revenue from them helps these countries’ finances. Wealthy Indians, troubled by polluted cities and the red tape holding up entrepreneurship, may want a quick ticket out of the country. Sanjay Kumar Singh lists a range of options: from a Canadian province’s investor programme to America’s US EB-5 plan.
Small savings schemes
Investors in small savings schemes breathed a sigh of relief when the government announced on October 1 that interest rates on these instruments would not be revised for the fourth quarter of the calendar year. With the economy witnessing a slowdown, and the stock markets also turning volatile, many investors are looking for alternative avenues to park their savings. Small savings schemes, with their sovereign guarantee, have emerged as a viable alternative.
Hard path to growth
The signals for the economy are not positive: overall demand is yet to pick up; the share of total exports in India’s GDP is declining, and industrial output pattern remains worrying.