The Indian mutual fund industry witnessed net outflows of over R1.09 lakh crore in March, largely due to the huge redemption from liquid and income funds. However, equity funds maintained their positive momentum and saw net inflows of R7,032 crore in March. Positive equity markets and improved sentiment among retail investors led equity funds to witness inflows of over R68,000 crore in FY15. According to the data from, Association of Mutual Funds in India (Amfi), mutual fund industry saw net outflow of R1,09,987 crore in March 2015. Liquid\/money market funds and income funds saw outflows of R1,12,810 crore and R8,927 crore respectively in March. Market participants say redemption from liquid schemes is a quarterly phenomenon as banks, financial institutions and corporates redeem their funds to meet tax obligation. Gilt funds saw inflows to the tune of R1,439 crore in March, 2015 and officials in the industry believes that flows will continue into gilt funds as interest rates are expected to fall from current levels. The Reserve Bank of India (RBI) had slashed repo rates by 25basis points (100 basis points=1%) each in January and March respectively and there is broad consensus on further rate cut by 50 basis points in next one year. Jimmy Patel, CEO of Quantum Mutual Fund said, \u201cEquity markets have delivered positive returns and that has attracted retail investors into equity schemes. I think investors have started understanding the benefits of investing in equity and that has resulted in strong flows in equity funds.\u201d Patel hopes the positive trend of investments into equity funds will continue going forward which would eventually benefit investors as well as the mutual fund industry. Apart from equity funds, equity linked saving schemes (ELSS) also saw inflows of R1,449 crore in the month of March. Meanwhile, balanced funds saw inflows of R1,491 crore in March. While gold exchange traded funds (ETFs) continued their downslide with net redemption of R111 crore in the last month. March saw 12 new equity schemes, launched by various fund houses, collect R1,447 crore. According to the from Amfi, nine schemes were close ended in nature which collected R1,224 crore while remaining three schemes which were open ended collected R223 crore. Market participants say, \u201cWe don\u2019t expect the redemption pressure to worsen going forward, due to volatile equity markets. Equity markets were largely unstable in March, but even then we saw net inflows into equity schemes. We even expect investors to start investing in long duration debt funds to gain from falling interest rates,\u201d added the CEO of top fund house.