Equity MFs continue to bleed, record redemption of Rs1,133 crore in April
May 11, 2010
Equity MFs have been bleeding over the last six months and they could not buck the trend in April. Equity schemes saw redemptions of Rs1,133 crore in April 2010 compared to Rs196 crore for the corresponding period last year, while assets under management (AUM) of equity schemes are up 63% at Rs1,76,830 crore in April compared to Rs1,08,507 crore in the corresponding period last year.
Investors have preferred to put their money in debt funds during the start of the year and have steered cleared of equity schemes. During April 2010, debt funds or fixed income schemes have recorded inflows to the tune of Rs1,77,773 crore. In March 2010, debt funds saw Rs1,64,487 crore in redemptions.
Equity-linked savings schemes (ELSS) recorded net outflows to the tune of Rs106 crore in April 2010. In March, ELSS schemes witnessed net inflows of Rs641 crore while the BSE Sensex was down 1% between 1st April-30th April.
Net inflows of all schemes stood at Rs1,85,956 crore in April 2010 compared to net outflows of Rs1,62,165 crore in March 2010. The total AUM of all schemes stood at Rs8,08,541 crore in April compared to Rs5,93,516 crore in the corresponding period last year.
According to the monthly data released by the Association of Mutual Funds in India (AMFI), the average AUM in the month of April 2010 grew by 40% at Rs7,69,165 crore compared to Rs5,51,300 crore in the corresponding period last year.
Equity funds have witnessed continuous redemptions since August 2009 to the tune of Rs7,970 crore except in January and February 2010 which recorded inflows of Rs1,514 crore and Rs980 crore respectively.
Industry experts cite market uncertainty as the main reason for investors shifting to debt funds. Institutional investors have also parked their money in fixed-income funds in April. — Ravi Samalad