 "Investors book profits in gilts amid declining hopes of rate cuts")
Gilt funds, which primarily invest in government securities (G-Sec), saw investors booking profits amid hopes of interest rate cuts taking a back seat for the time being.
The fund category had one of its highest net outflows in recent months at Rs 498 crore in May against a net inflows of Rs 986 crore in the immediate previous month. Amid outflows on the rise, sales of gilt funds hit their 8 months low slipping below Rs 1,000 crore mark to Rs 802 crore.
Industry's fund managers say that the kind of returns gilts offered to investors over the last one year may not sustain.
Gilts came into the limelight from the third quarter of FY13 when market had been anticipating steep rate cuts in following months. As a result of it, 5 out of the last 8 months since then saw a massive net monthly inflows of close to Rs 1,000 crore.
Higher inflows in gilts can be gauged from the fact that in FY13 gilts garnered around Rs 4,000 crore as net inflows against a negative outflows of Rs 20 crore in FY12.
At one point of time, out of the total debt assets of country's mutual fund industry, fund managers chose to pump close to 9 per cent into the gilt funds.
India's fund industry has 43 gilt funds in its basket managing an asset of Rs 8,926 crore as on 31 May, 2013.
The fund category had one of its highest net outflows in recent months at Rs 498 crore in May against a net inflows of Rs 986 crore in the immediate previous month. Amid outflows on the rise, sales of gilt funds hit their 8 months low slipping below Rs 1,000 crore mark to Rs 802 crore.
Industry's fund managers say that the kind of returns gilts offered to investors over the last one year may not sustain.
Gilts came into the limelight from the third quarter of FY13 when market had been anticipating steep rate cuts in following months. As a result of it, 5 out of the last 8 months since then saw a massive net monthly inflows of close to Rs 1,000 crore.
Higher inflows in gilts can be gauged from the fact that in FY13 gilts garnered around Rs 4,000 crore as net inflows against a negative outflows of Rs 20 crore in FY12.
At one point of time, out of the total debt assets of country's mutual fund industry, fund managers chose to pump close to 9 per cent into the gilt funds.
India's fund industry has 43 gilt funds in its basket managing an asset of Rs 8,926 crore as on 31 May, 2013.
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