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Equity Funds Start Pulling Crowd Again

The sweet return from the stock market is beginning to lure investors back to equity funds. 19 equity funds together raised Rs 40 crore in November. Though this is a trickle compared to few thousand crore pouring into bond funds every month, but it surely is a reversal of trend after many months. But it remains to be seen if this renewed faith brings luck and profit to investors

The sweet return from the stock market is beginning to lure investors back to equity funds. The assets base of the diversified equity funds went up by Rs 300 crore after over an year of plunging values and 19 funds together raised Rs 40 crore in November. Though this is a trivial amount when compared to few thousand crore pouring into bond funds every month, but it surely is a reversal of trend. The equity funds did not witness any meaningful inflow in the past 18 months. In fact, 9 of the 19 equity fund registered inflows over Rs 1 crore. In November, the average diversified equity fund gained 10.84 percent.

Pioneer ITI Bluechip lead the pack by attracting nearly Rs. 9 crore in November. After a tough year, investor's taste for a diversified equity fund shows in their preference for a well-diversified large-cap equity fund.

Alliance Equity, the erstwhile bull which has gained soberity in recent months was able to get Rs. 7.3 crore during the month. The rationale for investors pouring could be an expectation of repeat performance of the fund in a rising market.

The tortoise among equity fund – Zurich India Equity could also get Rs 4.50 crore, a relatively impressive sum going by its small size, which amounts to 10% of the total fund. Templeton India Growth Fund also found many takers for its value investing philosophy, to get Rs 3.71 crore in November. Though the fund looks more like a growth than a value fund today. The one time racy Magnum Equity also got Rs 3 crore in a good month after a long time in which it gained 13.4%. Franklin India Index Fund, the nifty tracker got Rs 4 crore in November.

The one-time blockbuster Birla Advantage could also pull some crowd again with new sales worth Rs 2 crore. But this time in the lead role played by Pharma (33% of total). While Pru ICICI Growth Plan, Pioneer ITI Prima Plus – the large and mid-cap fund and Pioneer ITI Index Nifty – the nifty tracker also raised over Rs 1 crore. Interestingly, two index funds together raised Rs. 4 crore.

However the numbers for technology stalwarts reveal that investors fled from the technology funds, not missing the chance to book small gains. While an average technology fund clocked a gain of 21 percent during the month. The aggregate asset base of technology funds crossed Rs 1000 crore mark with almost Rs. 200 crore gain mainly by appreciation. The asset base of technology fund was Rs 1037 crore on November 29, up from Rs 838.33 crore in October end. The only technology fund to attract new money was Pioneer ITI Infotech, which managed to get Rs 5 crore in November.

As the market's surge continues, it remains to be seen if this renewed faith brings luck and profit to investors.

Top Crowd Pullers
  Fund  Size (29/11)  Nov Inflow (Cr)
  Pioneer ITI Bluechip 261.84 8.98
  Alliance Equity 329.88 7.35
  Zurich India Equity 48.99 4.50
  Templeton IGF 139.92 3.71
  Magnum Equity 102.20 3.11
  Franklin India Index 33.24 2.77
  Birla Advantage 333.97 2.66
  Pru ICICI Growth Plan 321.32 1.59
  Pioneer ITI Prima Plus 109.03 1.59
  Pioneer ITI Index Nifty 4.59 1.47
 
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