Mutual Funds see Rs 47,000 crore outflow in Aug

Investors pulled out nearly Rs 47,000 crore from various mutual fund (MF) schemes in August, with liquid and money markets contributing the most to the outflow.

The move follows an inflow of about Rs 1.2 lakh crore into mutual fund products in the preceding month.

According to data from the Association of Mutual Funds in India (Amfi), investors withdrew a net Rs 46,750 crore in MF schemes last month.

Industry insiders said that mutual funds saw an outflow in MF schemes last month mainly on account of huge redemptions in liquid and money market funds.

However, investors continued to maintained their bullish stance on the equity schemes.

Liquid or money market fund category witnessed Rs 70,489 crore being pulled out last month, while equity and equity linked schemes saw an inflow of Rs 9,156 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 was at Rs 1.58 lakh crore in the April-August of the current fiscal, 2015-16.

The asset base of the country's 44 fund houses fell to Rs 12.55 lakh crore last month from an all time high of Rs 13.17 lakh crore in July.