According to a Deutsche Bank research report, inflows sustained into local equity Mutual Funds for a record 18th successive month.
"This was the 18th straight month of positive flows, and a strong sign that equitization of savings is getting entrenched despite volatile equity market in past few months," Deutsche Bank said in a research note.
The global brokerage firm noted that the trend of shift from physical assets to financial assets is a multi-year phenomenon and a lower level of inflows were likely in near term due to volatile markets, a robust tax-free bond issuance pipeline and an 'unprecedented streak' of USD 20 billion net inflows in preceding 17 months.
“While the pace of inflows has moderated in past two months (as against a monthly average of USD 1.36 billion between January-August 2015) we still see around USD 800 million- USD 1 billion clip as very healthy," Deutsche bank report said .
Moreover, in line with the sustained inflows into equity schemes, Mutual Funds in turn have continued to be net buyers of Indian equities for eighteenth straight month. The report said however that the pace of net investments by Mutual Funds moderated sharply to lowest since January this year at USD 453 million in October this year.

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