The Hindu Business Line : MFs witness net inflow in most categories

Redemption woes faced by Mutual Funds in the month of June is over. July month saw huge amounts of fresh money entering mutual funds to the tune of Rs 20,302 crore compared with the net outflow of Rs 4,603 crore seen in June, according to the figures of Association of Mutual Funds in India.

There has been a rise in inflow in the liquid/money market category.

As much as Rs 15,517 crore was invested in this category, compared with redemption of Rs 1,023 crore in money market category last month.

The income funds also saw inflow of money to the tune of Rs 5,114 crore, this month. In June, Rs 2,110 crore was redeemed.

The trend of higher investment in debt and money markets compared with equity markets are clearly visible. Equity schemes witnessed redemption in July, similar to the month of June.

However, the redemption from equity investment decreased from Rs 1,288 crore in June to Rs 209 crore in July.

Gilt funds witnessed net outflow of Rs 261 crore for July. There was net outflow of Rs 215 crore in the month of June also.

The mutual fund industry asset base increased by Rs 22,966.39 crore, an 8.65 per cent increase.

The current assets of the whole industry is at Rs 288,501.48 crore.