August saw MFs investing Rs 2,700 Cr in markets

Investors have shown conviction in markets once again in-spite of increased volatility and uncertainty on valuations even as several experts doubted the market valuation and claimed that " correction is eminent". Equity markets in the month of August saw Rs 2,700 Cr coming into markets. 

The inflows in the markets in the month of August by the fund manager reflects confidence amongst the professionals in the markets at current juncture. The previous two months saw outflows by the Domestic Institutional investors (DIIs).

According to media reports SEBI's data highlights mixed monthly trends since the month of April 2016. April month saw net outflows (Rs 575 Cr) whereas the month of May saw net inflows (Rs 7,149 Cr). The net outflows were seen in June and July followed by positive inflows in the month of August.

The positive sentiment in the markets can be attributed to GST bill being constitutionalised and also the equity culture that is spreading in India. Also, according to few experts there is a shift in asset allocation worldwide from fixed income to equity which is leading to re-rating of equity markets globally and in India as well. The valuation across the global markets has moved higher and same is the case with Indian markets and hence there is concern on the valuation front at current juncture. However experts suggest that no big correction is expected that can shake investors' confidence.