New Delhi: Mutual fund companies have withdrawn from the stock markets at a time when economic activity has slowed around the world due to the bottlenecks caused by the corona virus and the stock market continues to fluctuate. According to data from the Securities and Exchange Board of India (SEBI), mutual fund companies invested a net Rs 39,755 crore in shares during January-June.
“The fresh withdrawal of mutual funds is the reason for the negative flow of funds in equity mutual fund schemes during the last two months,” said Divam Sharma, co-founder of Green Portfolio, a portfolio management services company registered with SEBI. He said that some investors are cautious after the recent rally in the markets, while others have invested their capital directly in stocks. This is evident from the fact that there has been a significant jump in the number of demat accounts in the last few months.
