Mutual funds see Rs 77,000 crore outflow in September

Investors pulled out over Rs 77,000 crore from mutual fund schemes in September, making it the highest outflow in six months, with liquid and money markets contributing the most to the outflow. This comes on top of net outflow of about Rs 46,750 crore from mutual fund products in August. According to data from the Association of Mutual Funds in India (Amfi), investors withdrew a net Rs 77,142 crore in MF schemes last month.

This was the highest outflow in a single month since March, when the industry had seen a withdrawal to the tune of Rs 1,09,897 crore. Industry insiders said outflow from mutual fund (MF) schemes last month was mainly on account of huge redemptions in liquid and money market funds. However, investors continued to maintained bullish stance on the equity schemes.

Liquid or money market fund category witnessed Rs 60,861 crore being pulled out last month, income funds too saw net outflows of Rs 26,717 crore. However, equity and equity linked schemes saw an inflow of Rs 5,444 crore. Liquid and money market funds invest mainly in money market instruments like commercial papers, treasury bills, term deposits and certificate of deposits.

These funds have a lower maturity period and do not have any lock-in period. With the latest outflow, the net inflow in the schemes stands at Rs 80,895 lakh crore in the April-September period of the current fiscal, 2015-16. The asset base of the country's 44 fund houses fell to Rs 11.87 lakh crore last month from Rs 12.55 lakh crore in August.