Equity MF Inflow Low

There are no safe bets in a volatile market not even mutual funds as retail investors are shying away from the equity markets and the latest data clearly suggests that equity mutual fund inflows have hit a 6-month low last month.In April 2008 equity mutual fund inflows stood at Rs 530 crore as compared to the figure of Rs 6756 crore in the month of March, a decline of over 92 per cent. The assets under management for equity mutual funds have slipped 3.6 per cent to Rs 4288 crore in the past one month partly due to the drying up of new fund offerings in these uncertain times. Experts say the underperformance is also linked to schemes like the Reliance Natural Resources Fund, which are sitting on upto 60 per cent in cash.