India Stock Funds Face First Withdrawals since 2016

India’s stock market is about $1.9 trillion. According to Association of Mutual Funds in India (AMFI), net withdrawals from stock may top 10 billion rupees ($134 million) in July.

The chart below shows the fund flow in the past months.

The gains for Sensex in July are about 9%. The flows are mostly from overseas funds and participation by a growing contingent of amateur investors. But mutual fund investors are not sharing this exuberance as shown:

Source: Bloomberg, 2020-07-28, “India Stock Funds Face First Monthly Withdrawals Since 2016”