Business Daily from THE HINDU group of publications
Tuesday, Apr 03, 2007
ePaper
Business Daily from THE HINDU group of publications Tuesday, Apr 03, 2007 ePaper |
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Markets
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Mutual Funds Our Bureau
Kolkata April 2 Despite volatile condition at the bourses, mutual funds are not facing redemption pressure. According to mutual funds, most investors prefer to wait and watch instead of pulling out the money in a hurry. Mr Rajan Krishnan of Principal Mutual Fund, said, "there is no redemption pressure on the funds. Most clients are not inclined to leave at this stage, waiting instead for the trend to reverse. For many sections, it will mean a drastic step. However, it is not that people are overly optimistic; they are aware that the earnings season will be here soon." However, a few fund houses are keen to have substantial portion in cash component. Fund houses, on their part, underscore the need to have adequate cash in their portfolios, mostly deemed necessary to meet redemption requests placed by some investors anxious to get out. Mr Ajay Bagga of Lotus India Mutual Fund, said: "Yes, the sell-off has been huge. This was driven largely by foreign institutions. No, significant redemptions today insofar as we are concerned". Indian funds/investors may be willing to hang on for some time more, he added. As per SEBI data, mutual funds were net sellers to the tune of Rs 1,885 crore in March 2007 and about Rs 3,500 crore till date in 2007.
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