Massive Outflows Hit Fixed-Income Mutual Funds as Institutions Withdraw
In September, fixed-income mutual funds experienced a significant net outflow of Rs 1.02 lakh crore, driven by institutional withdrawals in liquid and money market funds. This marked a substantial increase from August's outflow of Rs 7,980 crore, pulling down assets under management by nearly 5% to Rs 17.8 lakh crore.
- Country:
- India
Fixed-income mutual funds faced a dramatic net outflow of Rs 1.02 lakh crore in September, a sharp rise from Rs 7,980 crore in August. This outflow, primarily triggered by significant institutional withdrawals from liquid and money market funds, highlights the volatility at the quarter-end liquidity cycle.
According to the Association of Mutual Funds in India (Amfi), these outflows pulled down assets under management (AUM) by nearly 5% to Rs 17.8 lakh crore. Nehal Meshram, a senior analyst at Morningstar, attributed these withdrawals to advance tax-related outflows.
While the liquid fund category saw the steepest outflow of Rs 66,042 crore, equity mutual funds managed a contrasting surge of Rs 30,421 crore, despite a drop from previous months' high inflows.
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