MF outflows surge in June

Liquid and money market funds have seen redemption of Rs 58,453cr.

According to data provided by the Association of Mutual Funds of India (AMFI), redemption in mutual funds seems to have outpaced sales in June.

As per the data, liquid and money market funds have seen redemption of Rs 58,453 crore compared with sales (investments) of Rs 53,365 crore, indicating a net outflow of Rs 5,088 crore.

Similarly, the growth (equity) funds, the redemption amounted to Rs 4,463 crore compared with sales of Rs 3,655 crore, that is, a net ouflow of Rs 808 crore. Income funds, on the other hand, have witnessed a net inflow of Rs 2,274 crore, with sales amouning to Rs 12,878 crore against redemption of Rs 10,604 crore.

All the three categories had seen net inflows in April and May against a similar trend in February and March. During February, income, growth and liquid funds faced redemption of Rs 99 crore, Rs 226 crore and Rs 1235 crore, respectively.

Redemption pressures were present in March as well, but were restricted to income and liquid funds as growth schemes saw net inflows. Growth schemes saw a 33.15 per cent decrease in their sales during the last month, from Rs 6,008 crore to Rs 4,512 crore. Total sales of liquid funds also went down from Rs 53,828 crore to Rs 49,981 crore, a 7.9 per cent fall as of that in June. But income funds saw a reversal to the trend seen in May, registering a net sale of Rs 11,994 crore against Rs 12,026.

Two new schemes, whose allotment have been completed during June, added just Rs 857 crore to growth funds against Rs 4,136 crore added by seven new funds in May.

But the Reliance Liquidity Fund, which was the only fund allotted in June, among liquid funds category, mopped up Rs 463 crore during this period.

K Rajagopal, chief investment officer of Reliance Mutual Fund, attributed its impressive mop-up to lower expense ratio of the fund. On the other hand, Tata Mutual Fund, which added Rs 549.71 crore to its assets, was the top gainer of the month, followed by the Sahara mutual fund.

Sahara Mutual Fund had witnessed a 94 per cent rise from Rs 290.89 crore to Rs 565.50 crore in the corresponding period. Rajiv Shastri, chief executive officer, attributed the growth to their new innovative approaches in the industry.

"We were duely rewarded for the positive environment that we created," Shastri said.