Perspective on AMFI Data by Dr. Vikas Gupta, CEO & Chief Investment Strategist at OmniScience Capital
Below the Perspective on AMFI Data by Dr. Vikas Gupta, CEO & Chief Investment Strategist at OmniScience Capital
“It is good to see that the Indian investors continue to trust equities as an asset class during ups and downs of the markets. This shows the maturity of Indian retail investors and the result of long-term educational efforts of the regulator and the financial market professionals. Equities maintained a INR 24000 crores monthly flow. Flexi-caps attracting the largest inflow is a good sign. However, smallcaps and midcap funds continue getting larger inflows compared to largecaps. Given that the largecaps are, typically, higher quality companies and are broadly available at a larger discount to their intrinsic values, it would have been better if investors allocated to them more. Interestingly, many large caps are also growing faster than many overvalued investor & fund manager favourites in the midcaps and smallcaps. It is good to see a flow of INR 19000 crores in ETFs which is comparable to the active equity flow of INR 24000 crores. Debt mutual funds recovered their liquidity which had dried up due to the advance tax outflows and other cash commitments in March. However, these are more reflective of corporate flows as compared to equities which are more retail or individual investors driven.”
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