"Every year March month high outflow is routine phenomenon and we should not read much into it. It happens due to high redemptions in Liquid Funds by the big corporate for year closing. Like the trend of many years, ever this year also, more than 90 per cent of the redemptions for the March month is in liquid funds.
"These funds generally come back in the month of April, as per the trend," Bajaj Capital Senior VP and National Head- Mutual Funds
Anjaneya Gautam said.
According to the data from the Association of Mutual Funds
in India (Amfi), total redemptions from MF schemes stood at Rs 73,113 crore last month as compared to Rs 1,09,897 crore in March 2015.
The latest outflow was mainly driven by contribution from Liquid or money market segment. Besides, income segment too witnessed outflow.
Liquid or money market segment witnessed redemptions to the tune of Rs 58,605 crore last month, while income segment saw net outflow of Rs 14,048 crore. In addition, equity funds saw net outflow of Rs 3,206 crore.
Overall, the asset base of the country's fund houses stood at Rs 13.53 lakh crore last month from Rs 11.88 lakh crore at the end of March 2015.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.