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Equity flows slip 78 pc in November

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New Delhi, Dec 10 : Net inflows into equity mutual funds dipped sharply to multi-year lows in November as on one hand, outflows from credit risk funds continued, while inflows into equity funds fell as much as 85 per cent.

Net inflows into equities stood at Rs 933 crore last month, a three-year low and a drop of nearly 85 per cent month-on-month, according to data released by the Association of Mutual Funds in India (AMFI).

Equity ETFs registered inflows of Rs 2,954 crore in November as compared to Rs 5,906 crore in October.

“Equity net inflows have fallen sharply in November due to profit-booking by investors,” said NS Venktatesh, CEO, AMFI.

Credit risk funds continued to suffer due to huge outflows. Last month, the 44-player mutual fund industry witnessed outflows of Rs 1,899 crore from credit risk funds in November, an increase of 37.4 per cent from the month ago period. Meanwhile, SIP inflows soared to all-time highs in November, AMFI said on Monday.

It was at Rs 8,272 crore, up 27 crore from last month’s numbers. The SIP inflows in October were Rs 8,245 crore.Total number of SIP accounts climbed further to 2.94 crore, an addition of 5.33 lakh accounts during the month. The asset under management (AUM) via SIPs jumped to Rs 3.12 lakh crore, up from Rs 3.03 lakh crore in the last month.

Since the beginning of the credit crisis in July last year, credit risk funds have consecutively seen outflows every month. Continuous outflows from this category have led to fall in AUM. So far in FY20, assets under management (AUM) of credit risk funds have fallen to Rs 63,754 crore from Rs 79,643 in April, a drop of nearly 20 percent.

Vishal Kapoor, CEO, IDFC AMC said on the data, “It’s heartening to see the industry add over 5 lakh SIP accounts in November – the highest so far this year – which is a strong testament to the continued value retail investors see in building investments through SIPs. In the Fixed Income space, investors continue to favour high quality portfolios in the short term space, with strong growth being registered in the Banking & PSU and Corporate Bond categories. Additionally, the Arbitrage Fund category continues to find favour, especially with HNIs looking for steady net returns.”

The downgrade of debt instruments from IL&FS and Dewan Housing Finance (DHFL) and Reliance Home Finance by rating agencies have hurt credit risk funds.

Another category under income and debt oriented schemes — liquid funds — saw a massive MoM fall in terms of inflows.Liquid funds, which are used by companies to park surplus cash, saw inflows of Rs 6,938 in November compared to inflows of The mutual fund industry was affected due to large exits by institutional investors from liquid funds, particularly in the first seven days.

From October 19, SEBI allowed fund houses to impose graded exit load on liquid fund investors who exit the scheme within seven days from the date of purchase.It allowed fund houses to impose an exit load of 0.007 percent on investors if they redeem their investment within a day.This means investors redeeming after a day will have to pay a higher exit load than those redeeming on the seventh day. Overall, the industry saw inflows of Rs 54,419 crore in November, with industry AUM at Rs 27.04 lakh crore.Rs 93,203 crore in the preceding month.

“Some liquid fund investors may have shifted to overnight funds due to the implementation of exit load in liquid funds,” Venkatesh said.

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Hyundai bets on diesel models, launches Tucson SUV

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Chennai, July 14 : The second largest car maker in India Hyundai Motor India Ltd while continuing to bet on diesel powered vehicles is also looking at faster demand recovery from tier 2/3 cities, said a senior official on Tuesday.

Hyundai Motor also launched its new premium sports utility vehicle (SUV) Tucson for the Indian market.

Speaking to reporters, Tarun Garg, Director (Sales, Marketing and Service) said the timing of Tucson’s launch is right as there are over five lakh Creta buyers in the country who are looking for an upgrade to a premium SUV.

The new Tucson’s starting price is about Rs 22 lakh.

“With over 6.5 million customers worldwide, Tucson is one of the best-selling SUV’s across the world,” S.S. Kim, Managing Director and CEO told reporters.

He said the model was unveiled at the Auto Expo 2020.

Garg said the booking for diesel engine models are growing and the demand is across the country and more so from tier 2/3 cities.

He said when the fuel prices go up, buyers will look at fuel economy and diesel engines are fuel efficient.

According to Garg, Hyundai Motor has got over 45,000 bookings for its SUV Creta model and 56 per cent of that are for diesel engine variant.

Similarly, one third of the booking for Venue and Verna are for diesel models, Garg said.

“SUV lovers want much more than the fuel economy which diesel vehicles offer. It appears demand will stablilise at this level. There is also good demand for petrol models,” Garg added.

Queried about the pay cuts implemented by various companies and its impact on buyers scaling down their model preference Garg said he is not seeing any such trend.

According to him, buyers prefer to come to the showroom to take delivery of new cars even though Hyundai Motor offers to deliver the car at their door step.

Garg said it is not possible to predict the likely sales for 2020 as some states have Covid-19 lockdown restrictions.

He said the company is watching the market behaviour on a monthly basis.

Garg said during June 2020, the company has reached 75 per cent of June 2019 demand figures, In July 2020 the car maker plans to touch 90 per cent of July 2019 levels.

On the availability of components as the company is planning to start third shift in its plant Garg said the localisation levels are very high and the dependence on components from China is very low.

According to Garg the company’s supply chain is ready to meet the demand for increased components as third shift production is soon to start.

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No lay-offs by Wipro amid crorona crisis, no such plan

The Bengaluru-headquartered IT behemoth employs more than 1.75 lakh people in several countries across the globe.

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Azim Premji Wipro

Bengaluru, July 13 : Global software major Wipro has not laid off any employee during the Covid-19 pandemic nor has any such plan at the moment, a top company official said on Monday.

“I just want to give comfort and say this categorically that we have not laid off a single employee as the pandemic unfolded,” Wipro Chairman Rishad Premji said at the company”s 74th annual general meeting (AGM) held virtually.

“At the moment, we have no plans to lay off anybody at the company,” he said, replying to a female shareholder.

“We are trying to drive cost deductions through various other means operationally and otherwise,” said Premji.

The Bengaluru-headquartered IT behemoth employs more than 1.75 lakh people in several countries across the globe.

–IANS

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Google to invest Rs 75,000 crore to boost digitisation in India

The investment will focus on four areas important to India’s digitisation– first enabling affordable access to information to every Indian in their own language.

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Sundar Pichai

New Delhi, July 13 : Google CEO Sundar Pichai on Monday announced a Google for India digitisation fund through which, the company will invest Rs 75,000 crore or approximately $10 billion over the next five to seven years to help India go digital.

“We will do this through a mix of equity investment, partnerships and an operational infrastructure ecosystem in India. This is a reflection of our confidence in the future of India and its digital economy,” Pichai said during the Google for India virtual conference.

The investment will focus on four areas important to India’s digitisation– first enabling affordable access to information to every Indian in their own language.

“Second, building new products and services that are deeply relevant to India”s unique needs. Third, empowering businesses to continue or embark on digital transformation. And fourth, leveraging technology and Artificial Intelligence for social good in areas like health, agriculture and education,” the Google CEO said.

India’s Union IT Minister Ravi Shankar Prasad were also present during the conference.

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