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| Investors put Rs 32,600 cr in MFs in August |
| Press Trust of India / New Delhi Sep 13, 2009, 14:35 IST |
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Investments in mutual funds slumped substantially in August, with the industry witnessing a net fund inflow of over Rs 32,600 crore, a 74 per cent decline on a month-on-month basis.
At the end of August, investors poured in funds worth Rs 32,673 crore, down from Rs 1,23,679 crore at the end of July, a monthly report by Association of Mutual Funds of India said.
Despite the slump in the volume of net investment, investors continued to prefer mutual funds as an investment option as inflows continued for the second straight month.
During August, fixed income plans with assured returns annually, saw a maximum investment of only Rs 38,275 crore.
"Uncertain interest rate scenario in the country are making investors put in money in fixed income schemes. Also volatility in the equity market saw investors pulling out from such funds," Kotak Mutual Fund Head (Fixed Income and Product) Lakshmi Iyer said.
However, equity funds investing in stocks saw net outflows of Rs 142 crore and liquid or money market funds, with higher liquidity and short maturity period, saw outflows worth Rs 5,215 crore.
"Income funds were in demand in August. Banks and corporate houses have parked their surplus cash with the fund houses, thereby leading to an increase in the assets under management (AUMs)," Taurus MF Managing Director RK Gupta said.
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