MFs witness net outflow of Rs 21,535-crore in June

New Delhi: Investors pulled out Rs 21,535 crore from various mutual fund (MF) schemes in June, making it the second consecutive monthly outflow, primarily due to huge redemption from money market segment.

In comparison, mutual funds witnessed an outflow of Rs 58,185 crore in May. Prior to that, Rs 1.71 lakh crore was invested in April.

The latest outflow was mainly due to withdrawal of money from liquid or money market funds.

According to data from the Association of Mutual Funds in India (Amfi), investors withdrew Rs 21,535 crore from MF schemes in June 2016.

Generally, liquid funds witness heavy outflow towards the end of March and the trend gets reversed in April as banks and corporates reinvest the surplus, which they had withdrawn to pay their financial and advance taxes.

The liquid or money market segment witnessed Rs 26,847 crore being pulled out last month while Rs 80 crore was taken out from Gold ETF (Exchange Traded Funds).

However, balanced funds and income saw inflow of Rs 2,402 crore and Rs 1,697 crore, respectively.

Money market fund's portfolio comprises 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 slightly slipped to Rs 13,80,747 crore last month, from Rs 13,81,625 crore in May-end.