Money to flow into ELSS in Jan-Feb-Mar: AMFI CEO

Hopefully, the flexi-cap category would come sometime during the end January or February, says NS Venkatesh, CEO, AMFI.

Why are we seeing redemption pressure? What is the primary worry for investors?
I would say that we had a mixed year last year and the redemptions in the equity schemes started mainly because the markets were touching new highs every now and then and so the people were planning to take out their money because of encashing their profits and partly because some of them would have met their goals. I would say they are looking at it from the point of view of encashing their profits because they had not seen that sort of return in the beginning of the last year. So in the second half, when they started seeing positive returns for their portfolio, they wanted to encash that and take in the money. So it is a profit-booking motive.

Will the flexi-cap category be introduced for reporting?
It is still a work in progress for some of the mutual funds. Hopefully, the flexi-cap should come sometime during the end January or February. Once they start re-categorising themselves into the flexi-cap, we will start reporting. We do not have any hesitation in reporting. Hopefully, it should come in January or February numbers.

Do you anticipate that the ELSS flows to pick up in the last three months of the year?
It should because the tax planning will start and hopefully January should see some improvement. February should see more funds flowing in. By that time , the budget will also be out and so people will understand the realities of the budget and try to take advantage of it by getting into the ELSS scheme in February. We will see money flowing in ELSS in January, February and March.

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