After witnessing net inflows for two consecutive months in 2010, the mutual fund industry witnessed net outflows in March.
Investors pulled out Rs 1,62,165 crore in March, according to data provided by the Association of Mutual Funds of India (Amfi). This was the highest ever net outflow, the previous high being in December 2009 where investors pulled out Rs 1, 57, 204 crore.
In January and February, there were net inflows of Rs 97,242 crore and Rs 6,365 crore respectively.
The income category, which witnessed the maximum inflows in February (Rs 4,887 crore), witnessed the highest net outflows of Rs 1,644,87 crore in March. Generally corporates withdraw money for the payment of advance tax.
The Equity category too after registering net inflows in both January (Rs 980 crore) and February (Rs 1,514 crore) posted net outflows in March. Investors pulled out Rs 2,016 crore in March.
The balanced category too witnessed net outflows to the tune of Rs 40 crore. This category had witnessed net inflows to the tune of Rs 88 crore in February.
The other categories to witness net outflows in March were Fund of Funds (FoF) – Rs 107 crore -- and other ETFs category – Rs 439 crore.
At the other end of the spectrum, the Liquid category witnessed the highest net inflows in March. Investors added Rs 3,971 crore in March whereas it had witnessed net outflows of Rs 516 crore in February. This category had witnessed a huge outflow to the tune of Rs 10,218 crore in January.
The gilt category, which saw net outflows of Rs 185 crore in February, witnessed net inflows in March to the tune of Rs 267 crore. Meanwhile, Gold ETFs continued their golden run as they saw net inflows of Rs 45 crore in March though this was less than February when investors had added Rs 118 crore.
One open-ended equity fund, Bharti AXA Focussed Infrastructure Fund, was launched in March which mobilised Rs 41 crore. Religare Gold ETF, an open-ended Gold ETF which was launched in March, mobilised Rs 19 crore while another open-ended ETF, Hang Seng Benchmark ETF, managed to mobilise Rs 55 crore.
Three open-ended income funds were launched in March – JP Morgan India Short Term Income Fund, Sundaram BNP Paribas MIP Aggressive and Sundaram BNP Paribas MIP Conservative which mobilised Rs 208 crore. Sixty-nine close-ended Income Funds were launched which managed to mobilise Rs 14,642 crore in March.
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