MFs offload shares worth over Rs 21,000 crore

Mutual funds offloaded shares worth over Rs 21,000 crore (Rs 210 billion) during the first 11 months of fiscal 2012-13, including outflows of Rs 848 crore (Rs 8.48 billion) during the month of February 2013.

The net outflow in February was, however, the lowest in eight months following a huge outflow of Rs 5,212 crore (Rs 52.12 billion) in January 2013, according to an analysis of latest data available with market regulator Sebi.

On the contrary, Mutual Funds seem to have a bullish stance on the debt market, where they invested Rs 40,092 crore (Rs 400.92 billion) in February, 2013.

Prior to that, MFs had invested Rs 40,652 crore (Rs 406.52 billion) in January 2013.

During the first 11 months of 2012-13, MFs sold equities worth Rs 21,135 crore (Rs 211.35 billion).

On the other hand, MFs have invested Rs 4.05 lakh crore (Rs 4.05 trillion)

in the debt market during the same period.

"During February 2013, Mutual Funds sold Rs 848 crore (Rs 8.48 billion) in equity as compared to Rs 5,212 crore (Rs 52.12 billion) sold in January 2013," the regulator noted.

This was the lowest net outflow from the stock market since May 2012, when MFs sold equities worth Rs 398 crore (Rs 3.98 billion).

Mutual Funds sold equities in 10 out of 11 months during 2012-13 (till February 2013), while June was the only month to record a net inflow of Rs 296 crore (Rs 2.96 billion).

The data for March is yet to be made public by Securities and Exchange Board of India.

At the end of February, there were a total of 1,222 schemes under Mutual Funds, of which 793 schemes (65 per cent of the overall schemes) were Income/Debt oriented while 342 schemes (28 per cent of total schemes) were growth/equity related.