Record inflows into debt funds were seen in April, which had faced redemption pressures a month earlier. According to a data released by Association of Mutual Funds in India (Amfi), income schemes witnessed inflows of over Rs 1.77 lakh crore in April and Rs 9,000 crore for money market schemes. In March 2010, debt schemes put together had seen redemption of Rs 1.64 lakh crore as corporates and banks pulled money to pay their advance taxes.
Sundaram BNP Paribas MF head (fixed income) K Ramakumar said, “Banks which had redeemed in large numbers in March are again back, while cash-rich corporates have also once again parked the money with mutual funds.? In April, overall net inflows into the mutual fund industry were to the tune of Rs 1.85 lakh crore.
However, equity schemes saw outflows of over Rs 1,100 crore, and so was the case for Gilt, ELSS schemes and balanced schemes. In contrast, with several exchange traded fund (ETFs) launched in the last few months, gold as well as other ETFs witnessed strong inflows. Mutual fund industry is concerned over continuous redemptions in the equity schemes. Only in January and February of the current year, equity schemes had seen a short reversal of trends with decent inflows coming into equity schemes. Otherwise, there were only outflows ever since the market regulator had banned entry load (in August 2009). “Only some large distributors are selling mutual funds while others have completely stopped selling it. We expect further outflows in the coming months from equity schemes,” said a CEO of leading fund house.
