[1]Mumbai: The mutual fund industry’s asset under management rose to an all time high of Rs 8.68 lakh crore as at the end of May on the back of strong inflows into the income funds and liquid fund schemes of mutual funds.
However, equity funds continued to witness heavy redemption from small investors, as they pulled out a total of Rs 2,910 crore during the month of May, the highest outflow in the last eight months. “What we are seeing in the market right now is that retail investors are booking profits in the equity markets and investing in other asset classes,” observed, Jaideep Bhattacharya, chief executive officer, Baroda Pioneer Asset Management Company.
He pointed out that investors are shifting towards liquid and money market schemes of mutual funds as well as long term fixed deposits offered by banks and physical gold as well.According to Bhattacharya, what is concerning the mutual fund industry is the lack of fresh inflow into the equity markets.
“Whatever inflows we are seeing into equity funds are through the systematic investment plans (SIP) from existing investors. “At present there is nothing in the equity markets for the investors to cheer about,” commented Dhirendra Kumar, chief executive officer (CEO), Value Research Online, a mutual fund tracking firm.
According to him, the trend of outflow from the equity schemes would continue somewhat on a lower scale as many investors have already pulled out money. During the month of May, the income funds asset under management rose to a three-year high of Rs 4.47 lakh crore led by inflows to the tune of Rs 21,000 crores according to CRISIL Research.
Similarly, AUM of liquid funds rose to a 25-month high of Rs 2.06 lakh crore witnessing an inflow of Rs 20,700 crore, claimed CRISIL Research. Similarly, AUM of liquid funds rose to a 25-month high of Rs 2.06 lakh crore witnessing an inflow of Rs 20,700 crore.
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