MF collections drop 80 pc in May

Industry could collect Rs 30,000 cr

Combined net inflows into 35 fund houses of the country was at Rs 30,148 crore in May, down from Rs 1,54,192 crore at the end of April, as per data available on the Association of Mutual Funds in India (AMFI) website.  “During April there was an abnormal increase in the inflow as corporate houses parked excess cash into the mutual funds to avoid paying higher tax. But in May, the inflows have come down to logical levels,” Taurus Mutual Fund Managing Director R K Gupta said. After pulling out over Rs 54,54,650 crore in the April-March period of 2008-09, the 35 fund houses in the country saw net inflows in the first two months of the current fiscal, which analysts feel was mainly due to the revival in the country’s equity market.

 At May-end, debt or income funds consumed a major chunk of the inflows worth Rs 28,114 crore, while equity funds saw inflows to the tune of Rs 1,900 crore. “The returns from liquid schemes lessed in May and there were some redemption from the fixed income schemes as well,” he added.  During May, liquid or money market funds, which invest in safer and short-term instruments like treasury bills, certificates of deposit and commercial paper, saw inflows worth Rs 856 crore.