Equity MF schemes see outflows for eighth consecutive month

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fe Bureau: Mumbai, Feb 12 2013, 01:23 IST

Tags: MF Schemes | Crisil Research | RBI

Equity MF schemes witnessed outflows for the eighth consecutive month, with net outflows in January totalling R2,501 crore, latest data from mutual fund industry body Amfi show. This is despite the fact that the benchmark S&P CNX Nifty rose 2.2% for the month. According to industry observers, the upsurge in the market since September last year has helped long-term investors to break even on their investments after a long wait, and many of these investors have been happy to exit.

Equity schemes had seen outflows of R14,148 crore in calendar year 2012 against R6,848 crore in 2011. However, the good news for the industry is that the average month-end assets under management (AUMs) rose to an all-time high of R8.26 lakh crore in January 2013, primarily led by inflows into money market and income funds. The industry’s AUM rose 8.7%, or by about R66,200 crore, to post the highest percentage rise in the past nine months.

Liquid/money market schemes saw inflows of R44,865 crore in January, the highest since April 2012 against outflows of R29,796 crore in December. The inflows were part of the category’s cyclical money flows.

“Corporates, the major investors in this category, usually withdraw money to meet quarter-end advance tax requirements and re-invest the same in the subsequent month,” said Crisil Research. Assets of liquid funds rose to its highest level since April 2011 at R1.96 lakh crore.

Income funds saw inflows of R17,281 crore that took their AUM to almost R4 lakh crore, the highest month-end assets for the

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