“The good part is if you look at the gross purchases, the gross purchases are around almost Rs 30,000 crores into equity, add another Rs 15,000 crore hybrid that takes it up around Rs 45,000 crores of equity purchase which is good,” says Swarup Mohanty, Mirae Asset.
Talking about the initial numbers yes, you had a volatile December month coming in but the heartening fact to note is that we have definitely witnessed a net inflow of around Rs 4491 crore?
Yes, I think when I look at the numbers I think the broad net equity is showing around Rs 7300 cr and if you add hybrid to it, it is around Rs 2255 cr so it broadly looks in line.
Talking about the initial numbers yes, you had a volatile December month coming in but the heartening fact to note is that we have definitely witnessed a net inflow of around Rs 4491 crore?
Yes, I think when I look at the numbers I think the broad net equity is showing around Rs 7300 cr and if you add hybrid to it, it is around Rs 2255 cr so it broadly looks in line.
The good part is if you look at the gross purchases, the gross purchases are around almost Rs 30,000 crores into equity, add another Rs 15,000 crore hybrid that takes it up around Rs 45,000 crores of equity purchase which is good. I mean the debt side of course is reflecting the volatility of the interest rates and it is a quarter end so some amount of the liquid money would have gone out but broadly yes, it looks good. I mean we had seen one volatile month before that but some sanity seems to have prevailed and on the passive side there is a lot of money coming into the target maturity funds. So the thing that one has to notice in this inflow is that slowly but surely there is a shift towards mid and small cap buying. People should understand that buying midcaps and small caps do add or increase the risk of their portfolio and I hope people are conversant with that. The kind of buying that we are having vis-à-vis the multi cap or the large cap sort of inflow is a thing which we have to keep in mind.
Even the debt category has seen an outflow, going ahead what is your outlook on this one because seeing the volatility in the markets a lot of analysts were highlighting that the debt could be the category for 2023 so what are your views on this for the numbers that could shape the industry ahead?
You have hit upon a very interesting point and my personal opinion is that people time debt more than they time equity over a period of time. Investors have started matching their investment horizon to the investment horizon of equity as an asset class and that is why we have been seeing systematic shift and a lot of it is due to the SIPs that is happening. But in debt it is a very short term kind of an approach and a little tweak on interest rates or the broad economic environment just takes the money out of the table and that is something we are witnessing when you look at the broad category wise numbers.
But incidentally what is also happening is a lot of money is going out of active long debt and getting locked into the target maturity funds on the passive side or the index side. It is a good time for people to lock into some of these yields and I think they are taking this opportunity to do that.
So as long as they are taking this opportunity to lock in the yields it does not matter whether it is going out from here or there but broadly I think people are yet to match their investment horizons to the investment horizon of the fund. It is still a very market timed kind of an approach of investing in debt in India.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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