VR Logo

Industry sees Rs 62,960 crore outflow in May

This is in sharp contrast to the Rs 1.86 lakh crore inflows in April

After witnessing net inflows of Rs 1, 85,956 crore in April, the mutual fund industry witnessed net outflows worth Rs 62,960 crore in May. The magnitude of such outflows is probably due the higher-than-expected payout on account of 3G auctions that has led corporates to withdraw the money parked with mutual funds. The next month could witness higher outflows on account of advance tax outflows in addition to the 3G auction payment. According to data provided by the Association of Mutual Funds in India (Amfi), net outflow of Rs 1,62,165 crore occurred in March.

Equity mutual funds registered the highest net inflows of Rs 1,256 crore in May. On the other hand, the income category saw the highest net outflows of Rs 35,084 crore during the month.

In May, one open-ended income fund - Kotak Credit Opportunities - was launched which mobilised Rs 361 crore. DWS Global Agribusiness Offshore Fund, which is an open-ended funds of fund, mobilised Rs 22 crore. Four funds falling under the close-ended income category - HDFC FMP 36M April 2010-Series XII, HDFC FMP 367D April 2010 (2)-Series XII, Reliance Fixed Horizon Fund-XIV-Series 10 and Reliance Dual Advantage Fixed Tenure Fund Plan A -- were launched which mobilised Rs 601 crore.