April net mutual fund inflows soar to staggering `1.7 trillion
In comparison, a total of Rs 1.10 lakh crore was invested in April last year. Generally, liquid funds witness heavy outflow towards the end of the March and the trend gets reversed in April as banks and corporates reinvest the surplus, which they had withdrawn to pay their financial and advance taxes.
According to the data from the Association of Mutual Funds in India (Amfi), investors poured in a net of Rs 1,70,161 crore in MF schemes last month as against an outflow of Rs 73,113 crore in March.
The inflow was mainly driven by contribution from liquid funds or money market category. Besides, inflows have resumed in equity schemes on strong retail participation. Liquid or money market segment witnessed Rs 1.34 lakh crore being poured in last month while equity and equity- linked schemes saw net inflows of Rs 4,438 crore. In addition, net inflow in balanced fund stood at Rs 31,448 crore.
"Every year in March, high outflow is a routine phenomenon and we should not read much into it. It happens due to high redemptions in liquid funds by big corporate for the year closing. Like the trend of many years, ever this year also, more than 90 per cent of the redemptions for the March 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. Money market fund's portfolio comprised short-term (less than one year) securities representing high-quality, liquid debt and monetary instruments.
Overall, the asset base of the country's fund houses surged to an all-time high of Rs 14.22 lakh crore last month from Rs 12.33 lakh crore at March-end.