Interestingly in March 2024, practically all debt categories excluding Long Duration funds, and Banking & PSU funds have witnessed outflows which could be attributed to strained liquidity
FinTech BizNews Service
Mumbai, April 11, 2024: Sanjay Agarwal, Senior Director, CareEdge Ratings, shares an interesting viewpoint on AMFI numbers for March 2024 announced on Wednesday.
“The Rs53.4 lakh crore Mutual Fund industry witnessed outflows of nearly Rs1.6 lakh crores led by the debt funds which witnessed outflows of over Rs1.98 lakh crore. The liquid funds outflows of nearly Rs1.57 lakh crore, albeit on the higher side compared to December 2022 as well as March 2023 are a regular quarterly pattern of liquidity management by corporates. Interestingly in March 2024, practically all debt categories excluding Long Duration funds, and Banking & PSU funds have witnessed outflows which could be attributed to strained liquidity. The Credit Risk category continued to witness 12th straight month of outflows. Meanwhile, inflows in equity funds which have remained in the positive territory for 37 months have witnessed some interesting trends. Sequentially they declined by 15.8% while increasing by 10.2% on a yearly basis. The large cap funds inflows saw a significant boost. However small cap funds witnessed outflows after 30 months since some of the mutual funds put in restrictions to limit fresh inflows into those funds as well due to market concerns due to frothy valuations and results of stress tests. This could also be attributed to some profit booking and rebalancing (reducing small cap exposure while increasing large cap exposure) by investors.”
