Mutual Funds suffer nearly 1.60 lakh cr outflow in June: AMFI

Investors pulled out Rs 1.60 lakh crore on a net basis from mutual fund schemes in June against a net investment of Rs 76,989 crore in May mainly due to persisting weak confidence in debt-oriented plans, industry data showed Monday.

Net outflows from debt-oriented schemes were more than Rs 1.71 lakh crore in June against inflows of Rs 70,119 crore in May, the data by Association of Mutual Fund of India (AMFI) showed.

In recent months, the mutual fund industry has been grappling with redemption pressure in the wake of debt crises at various groups, including IL&FS, Essel and DHFL.

"The debt segment saw the largest outflow of Rs 1,71,349 crore as compared to Rs 70,119 crore inflow witnessed in May'19, as investors' confidence was dented after a series of defaults/delays by some popular names," Bajaj Capital CEO Rahul Parikh said.

The net outflows of mutual funds stood at Rs 1,59,814.40 crore in June.

Debt-oriented schemes, which include overnight fund, liquid fund, low duration fund saw a significant outflows with liquid funds being the worst hit.

Liquid funds alone witnessed an outflow of Rs 1.52 lakh crore.

On the liquid fund outflows AMFI CEO N S Venkatesh said, "This is a usual quarter-end phenomena where the industry does witness temporary redemptions from liquid funds."