Month-on-month flows into mutual funds were hit during June, but the overall asset base rose to Rs 23.40 lakh crore. Industry veterans from the MF segment attribute the fall in investments to a decline in flows into balanced funds, but systematic investment plans (SIPs) have been steady.
“There has been some impact on lumpsum flows as well as balanced funds. The amount of flows will be limited as the market becomes cheaper,” Nilesh Shah, MD of Kotak Mutual Fund, told CNBC-TV18. Having said that, he expects some growth in flows on a year-on-year basis. On a segmental basis, Shah expects balanced advantage funds to start shifting money from debt to equity market soon.
He believes the market could remain rangebound going forward. “This is based on two factors: rising crude prices and interest rates. But the downside could be capped as well based on a normal monsoon as well as improving inflows from Goods & Services Tax.”
