Page 25 - BANKING FINANCE JANUARY 2016 ONLINE

MUTUAL FUND

MF investment in eq- Mutual Funds see Rs 31,000 crore outflow in
uity markets at Rs November
70,000 crore in 2015
Investors pulled out more than Rs linked schemes saw an inflow of Rs
Mutual fund houses continued to be 31,000 crore from various mutual fund 6,379 crore.
bullish on the equity markets in 2015 schemes in November, with liquid and
and purchased shares worth a stag- money markets contributing the most Liquid and money market funds invest
gering over Rs 70,000 crore, prima- to the outflow. mainly in money market instruments
rily on account of strong participa-
tion from retail investors. This is on This follows an inflow of like commercial papers,
top of Rs 23,843 crore already being about Rs 1.35 lakh crore treasury bills, term deposits
infused in the entire 2014. In com- into mutual fund (MF) prod- and certificate of deposits.
parison, Foreign Portfolio Investors ucts in the preceding These funds have a lower
(FPIs) made a net investment of just month. According to data from the As- maturity period and do not
Rs 16,674 crore during the period. sociation of Mutual Funds in India have any lock-in period.
(Amfi), investors withdrew a sum of Rs
However, in the last three years, for- 31,196 crore from MF schemes. With the latest outflow, the net inflow
eign funds have made an average in- in the schemes was at Rs 1.84 lakh
vestment of USD 20 billion (around However, investors continued to main- crore in the April-November of the
Rs 1 lakh crore) each in the Indian tain bullish stance on the equity current fiscal. The asset base of the
stock markets. schemes. Liquid or money market fund country's 44 fund houses fell to Rs
category saw Rs 42,059 crore being 12.95 lakh crore last month from an all
According to the latest Sebi data, do- pulled out, while equity and equity time high of Rs 13.24 lakh crore in
mestic mutual fund (MF) managers October.
have invested a net Rs 70,173 crore
in the equity markets in 2015. The in- How to select performing mutual fund
flows could be much higher for 2015
as four trading sessions are still left. When it comes to our investment decisions, we always tend to trust our col-
league or friend over an experienced financial advisor. But it is not done, very
Equity MFs, including equity-linked much like a family health doctor, there should be family finance doctor (a finan-
saving schemes, have seen a net in- cial advisor) who understands the financial needs and works with the family to
flow of nearly Rs 87,000 crore till help them achieve their financial goals. When such advisors help you in con-
November this year. The surge in in- structing the investment portfolio, it is strongly advisable not to believe in hear-
flows into equity schemes has say or recommendations from a non-competent person, be it family or friends.
prompted fund houses to pump
money in the share markets. It would be wrong to identify one fund or a set a funds as best performing funds
and investing in them. One single fund is not a solution to all our problems.
Choosing a mutual fund to invest is an outcome of need analysis, risk profiling,
defined financial goals, etc.

REC CMD Bags the Best CEO Award

Shri Rajeev Sharma, CMD, REC was presented with the 'Best CEO' award in the PSU category at the 'Business Today
Best CEOs Awards' ceremony by Shri Jayant Sinha, Honorable Union Minister of State of Finance. He joined as CMD of
REC, a Navratna Public Sector Enterprise, in 2011 and has more than 30 years of experience in the power sector.

The awards ceremony was preceded by a talk by Shri Sharma on 'A blueprint to reach power to the remotest villages',
in which he conveyed that electrification of rural areas is a great challenge and that the organisation is working on it
in 'mission mode' to make sure that electricity reaches the remotest of villages. He also said that the Honorable Prime
Minister Shri Narendra Modi has set a target of 1000 days to complete electrification of all un-electrified villages
which REC strives to achieve in a span of two years.

The event saw the presence of several notable personalities from public, as well as, private sector organisations. REC
is an Enterprise of the Government of India under administrative control of the Ministry of Power, committed to
providing financial assistance in the field of Generation, Transmission & Distribution in the Power Sector. REC is also
the nodal agency of the Government led Deendayal Upadhyaya Gram Jyoti Yojana scheme.

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