Equity mutual fund exits highest in May 2013

 

The Indian equity markets have been quite volatile over the last few years. Several risk factors in the domestic economy along with uncertainty in the global economy have taken a toll on equity investments. As a result, retail investors have been rushing to exit from equity mutual fund scheme. As per an article in Business Standard, the month of May 2013 saw the highest ever number of equity folio closures. The chart of the day shows the months with the highest folio closures. During the financial year 2012-13, equity mutual funds witnessed over 4.5 million folio closures.

The main reason for retail investors exiting equity mutual funds is the lacklustre returns delivered by most schemes. As per Business Standard, annual returns have been a paltry 6-7% over the last five years. This has caused many investors to shift to debt schemes which offer relatively better returns. 

                                      

Data source: Business Standard