Call it profit booking, if you will, or being cautious, between the August-to-November, 2009 period, when the markets were mostly rallying, equity investors found it to be an opportune time to pull out their money from the equity funds category.
So much so that in October, the category registered the highest outflows since 2006 as investors pulled out as much as Rs 2,123 crore - in all fairness, the Sensex did fall by 7.18 per cent in that month, but the overall market trend has been upwards for months.
This is evidenced by the month of November, when the Sensex jumped 6.48 per cent, but investors pulled out Rs 1,109 crore. And, over the last four months (August-November), when markets soared 8.01 per cent, investors pulled out a net total of Rs 5,130 crore, making it the fourth straight month of outflows for this category.
Last year around the same period (August-November, 2008) when the world was reeling under the global financial crisis and the markets had tanked 36.66 per cent, though the category witnessed net outflows, the amounts involved were far less. Investors shed a relatively meagre Rs 468 crore in these four months last year. In fact, the month of September last year saw inflows of Rs 604 crore.
Coming back to 2009, since the start of the bull run (March 9, 2009), though March and April witnessed meagre outflows, over the following three months, investors had invested a huge Rs 7,628 crore, especially after market sentiment soared as the Sensex, for these five months, gained 92 per cent. For the period March 31, 2009 to November 30, 2009, the Sensex has gained 107.4 per cent.
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