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Outflows Hit MFs

The mutual fund space saw outflows of as much as Rs 1,44,327 crore

The mutual fund industry has registered a huge problem of outflows in the month of September.

Investors pulled out Rs 1,44,327 crore overall, which was a fall of as much as 19.07 per cent of their assets.

This comes on the back of positive inflows of Rs 32,673 crore that happened in August.

The surprising part is that not only did outflows happen from closed-end schemes, but also from open-end schemes as well.
The worst affected in the open-end category were Income funds, which witnessed outflows to the tune of Rs 1,02,311 crore registering a fall of 26.40 per cent. Liquid funds too registered outflows to the tune of Rs 30,093 crore making marking a negative change of 23.62 per cent.

For the closed-end funds category, Income funds witnessed outflows to the tune of Rs 10,143 crore. This comes after the assets under fixed maturity plans (FMPs) fell by 15 per cent to Rs 35,049 crore in August. No new FMPs were launched in August and the net outflows totalled Rs 6,784 crore in this category. This September, however, there were nine FMPs launched in September which collected Rs 1,384 crore.

Open-end Equity schemes too took a hit this time as there were outflows to the tune of Rs 1,628 crore, registering a dip of 1.20 per cent, while close-end ones saw a outflow of Rs 152 crore.

There were five new open-end equity schemes which were launched in September with their collections totalling Rs 826 crore. The new funds were Canara Robeco F.O.R.C.E Fund, Franklin Build India Fund, Kotak Select Focus Fund, Sahara STAR Value Fund and Shinsei Industry Leaders Fund.

Another scheme that was launched was the ICICI Pru R.I.G.H.T. Fund, a close-end ELSS – Equity, which collected a sum of Rs 86 crore.

The hoopla around Gold ETFs continued in September as well, registering inflows of Rs 76 crore, in comparison to Rs 15 crore in August. Inflows increased in this category by 8.41 per cent.

Other ETFs also witnessed inflows in September of Rs 53 crore after it witnessed an outflow of Rs 43 crore in August.

Inflows/Outflows: Falling Out
Net Inflow/Outflow (Rs cr)
Fund Category (AMFI) Aug-09 Sep-09 Change (%)*
Balanced -133 -255 -1.53
ELSS 24 47 0.23
Equity -142 -1756 -1.09
Fund of Funds Investing Overseas 338 -222 -7.43
Gilt -446 55 1.40
Gold ETFs 15 76 8.41
Income 38275 -112232 -26.54
Liquid/Money Market -5215 -30093 -23.62
Other ETFs -43 53 6.38
Grand Total 32673 -144327 -19.07
Source: AMFI (it includes open and close-end schemes)
*Change (%) over the previos months assets