MFs see largest redemption in 3 years at Rs1.09 lakh crore
11 Apr 2014
Mutual funds saw unusually large redemption of Rs1.09 lakh crore by investors in March, making it the highest monthly outflow in three years.
According to the data released by the Association of Mutual Funds in India (AMFI) on Thursday, the liquid or money market witnessed significant outflows, although income funds and non-gold ETFs (Exchange Traded Funds) saw some inflows.
The net redemption of Rs1,08,951 crore in the last month of FY14 is the highest monthly outflow since March 2011, when mutual funds had witnessed redemption to the tune of Rs1.27 lakh crore.
Market participants said the redemption was mainly on account of large investments being pulled out by banks in the last month of a financial year.
In terms of categories, the liquid or money market witnessed the highest outflow of Rs1.17 lakh crore in March. Besides, equity funds saw outflow worth Rs2,102 crore and gold ETFs witnessed a pullout of Rs 149 crore.
On the other hand, income funds saw investment to the tune of Rs7,838 crore, while non-gold ETFs witnessed infusion valued at Rs3,087 crore.
This outflow has pulled down the average AUM (assets under management) of the country's 44 fund houses to Rs8.25 lakh crore at the end of March 2014 from Rs8.76 lakh crore in the previous three-month period.
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