MFs see Rs 1.44 lakh cr outflow in September

MFs see Rs 1.44 lakh cr outflow in September

The combined net outflow from the 36 fund houses stood at Rs 1,44,327 crore in September, as per the Association of Mutual Funds in India (AMFI) data.

Reversal expected

“The outflow was expected as banks pull out hefty amounts from income schemes at the end of every quarter to meet their liquidity requirements. However, there would be reversal at the end of October,” Taurus Mutual Fund Managing Director RK Gupta said. Total fund inflows in July and August stood at Rs 1,56,352 crore.

So far this financial year, the mutual fund industry witnessed a net inflow of over Rs 3.40 lakh crore, while there have been outflows in two months — June and September — totalling over Rs 2.28 lakh crore, the data showed.

Investors had pulled out Rs 83,937 crore in June, while at the end of September investors pulled out Rs 1,44,327 crore, the biggest outflow in a month so far this fiscal.

Outflow in previous month

At the end of September, investors pulled out money from the four major fund schemes — income, equity, balance and liquid or money market. Over the month, investors had pulled out Rs 1,12,232 crore from income or debt funds, and equity funds saw outflows to the tune of Rs 1,756 crore.

Analysts believe that despite a good return from the stock market during the month, equity scheme witnessed outflows as investors preferred to remain cautious.“Investments in debt schemes would look up again at the end of October as banks, one of the largest investors in liquid funds, are again flush with funds,” Gupta said.

Short-term funds

During September, liquid or money market funds, which invest in safer and short-term instruments like treasury bills, certificates of deposit and commercial paper, saw outflows worth Rs 30,093 crore and investors pulled out Rs 255 crore from balanced funds.

Besides, gilt funds witnessed inflows valued at Rs 55 crore and Gold ETF of Rs 76 crore during the month.

The combined assets under management (AUM) of the country’s 36 fund houses fell by about 1per cent to Rs 7.44 lakh crore. At the end of August AUM stood at Rs 7.51 lakh crore.