Equity mutual funds are expected to see a big dip this month making it the fourth straight month of fall, but, the flows have to be read in the context of net flows and gross flows, said Sunil Subramaniam, MD & CEO, Sundaram Mutual Fund.
"The gross flows have been steady between Rs 30,000 to 40,000 crore between April until now, while the net flows figure could vary depending on redemptions for a particular month," he told CNBC-TV18.
Swarup Mohanty, Chief Executive Officer at Mirae Asset Global Investments added that no change has been seen in inflows into their equity funds.
"There is fair amount of stress in fixed-income flows and but the for now id liquid funds. This trend is expected to continue for some more time, Mohanty explained.
The other distinction is between general equity and balanced, arbitrage, FoFs etc. Rs 15,000 crore of general equity has been steady right through the year while the other goes up and down. Moreover, out of this Rs 15,000 crore general equity, Rs 8000 crore is SIP.
Subramaniam also confirmed that he has not come across any request to cancel SIPs. However, the incremental flow to the SIP, which was rising fast has slowed down, he added.
According to him, the market is reacting to the fact that the purchases of mutual funds have slowed down. MFs have increased cash positions by 1.5-2 percent due to volatile market conditions and it is around 4-4.5 percent now.