Saturday, October 12, 2013
Mutual Funds Log Y5tln Inflow In 1st Half
TOKYO (Nikkei)--Inflows at publicly offered mutual funds exceeded outflows by 5.29 trillion yen in the April-September half, according to figures released Friday by the Investment Trusts Association, Japan.
The net inflow, the highest for a half since April-September 2007, soared 350% on the year, exceeding last fiscal year's full-year figure of 4.68 trillion yen. Even with the market volatility in late May, interest in funds has continued to rise as retail investors anticipate a further rally.
Buying was widespread of vehicles investing in Japanese stocks, which saw a net inflow of around 2.4 trillion yen. With Tokyo's selection to host the 2020 Olympics announced in September, money poured into funds that invest in domestic real estate investment trusts. But those investing in foreign debt suffered a net outflow.
A tax-free investment program, dubbed NISAs, will be implemented this January to encourage individual asset-building. Index funds and other investment trusts aimed at NISA users popped up rapidly in September, with 117 set up that month -- the most active month for new funds since February 1994, when 120 were established.
"From the beginning of next year on, capital can be expected to flow into the market through investment trust purchases via NISA accounts," says Nobuyuki Fujiwara of Deutsche Asset Management (Japan) Ltd.
(The Nikkei, Oct. 12 morning edition)