Indian Equity MF investors turn market savvy

The Indian stock markets have rallied at a scorching pace this year. What is more, investors seem to be getting jittery at this meteoric rise. Otherwise what would explain the fact that in October 2009, investors booked profits worth Rs 66 bn in equity mutual funds, the highest ever for any month? At the same time, Rs 44 bn was poured into these funds resulting in a net outflow of Rs 21 bn, which also happens to be a monthly record. No doubt that the markets this year have gone too high too fast and investors, who don’t want to repeat the mistakes last year when markets touched 21,000 levels, are looking to take some profits off the table.

Mutual fund houses also agree that lack of push from the financial advisors and mutual fund agents, who now have to claim their commissions directly from investors, has had an impact on business. However, overall the general perception is that investors are taking informed decisions, and this indeed is an encouraging sign.