Income schemes witnessed huge redemption pressure in March as banks and corporates pulled money out of mutual funds. After a gap of two months, equity schemes also saw outflows as investors booked profit after the surge in the equity markets in March.
According to Amfi data, total outflows in schemes for March stood at over Rs 1.62 lakh crore with the income schemes suffering the most. Income schemes saw redemptions of Rs 1.64 lakh crore while equity schemes saw outflows of over Rs 2,000 crore.
In contrast, inflows were seen in the money market schemes, gilt schemes and equity-linked savings schemes (ELSSs). Money market schemes saw inflows of over Rs 4,000 crore while gilt schemes witnessed Rs 267 crore coming in March.Fixed income head at Sundaram BNP Paribas Mutual Fund says, “Such outflows take place at the end of every quarter. However, it is always a huge at March-end”.
He added that the figure was large as apart from corporates, banks also pulled huge MF money, as it was a year end month. In January and February, equity schemes had seen strong inflows following improved market conditions and participation from the retail investors. After the ban on entry load by the market regulator Sebi, there had been continuous outflows from the equity schemes from August, 2009 till December 2009.
Source: http://www.financialexpress.com/news/mfs-see-rs-164kcr-outflow-in-mar/604856/
According to Amfi data, total outflows in schemes for March stood at over Rs 1.62 lakh crore with the income schemes suffering the most. Income schemes saw redemptions of Rs 1.64 lakh crore while equity schemes saw outflows of over Rs 2,000 crore.
In contrast, inflows were seen in the money market schemes, gilt schemes and equity-linked savings schemes (ELSSs). Money market schemes saw inflows of over Rs 4,000 crore while gilt schemes witnessed Rs 267 crore coming in March.Fixed income head at Sundaram BNP Paribas Mutual Fund says, “Such outflows take place at the end of every quarter. However, it is always a huge at March-end”.
He added that the figure was large as apart from corporates, banks also pulled huge MF money, as it was a year end month. In January and February, equity schemes had seen strong inflows following improved market conditions and participation from the retail investors. After the ban on entry load by the market regulator Sebi, there had been continuous outflows from the equity schemes from August, 2009 till December 2009.
Source: http://www.financialexpress.com/news/mfs-see-rs-164kcr-outflow-in-mar/604856/
Posts
No comments:
Post a Comment