Advisors push systematic withdrawal plans to curb outflows from MFs

Investors continue to pull out funds with markets making new highs, say industry players

The sharp surge in outflows has led to concerns among mutual fund (MF) advisors. The latter are asking investors to consider systematic withdrawal plans (SWPs) or systematic transfer plans (STPs) when redeeming investments. According to industry sources, investor outflows have continued in December, even after flows slipped to a multi-year low last month. 

“So far, equity schemes have mopped up Rs 2,000-3,000 crore of flows, which are still significantly lower than the monthly run rate we have seen this year. However, the flows may pick up in the last week of the month,” said a chief executive of a fund