INVESTORS pumped Rs 1.2 lakh crore into various mutual fund schemes in January, after pulling out a massive Rs 62,000 crore in the preceding month, primarily on account of infusion in liquid and overnight schemes. Mutual fund inflows will gather further momentum in the coming months, Union Asset Management Company CEO G Pradeepkumar said. According to data by the Association of Mutual Funds in India (Amfi), net inflow of Rs 1.2 lakh crore was witnessed in mutual fund schemes last month as compared to an outflow of Rs 61,810 crore in December. Fund managers attributed the growth in asset base to strong inflow of around Rs 1.09 lakh crore in debt-oriented schemes.
Among debt-oriented schemes, liquid funds, with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon, received flows worth about Rs 59,683 crore, the highest among the fixed-income segment last month. In addition, overnight funds, which invest in securities with maturity of one day, received inflow of about Rs 22,652 crore. “On the fixed-income side one of the noticeable trends is a shift away from liquid funds toward overnight funds. With the introduction of exit load in liquid funds and certain additional restrictions that will come into effect from April 1, 2020, we expect this trend to continue,” Pradeepkumar said. The open-ended equity and equity-linked saving schemes witnessed an infusion of Rs 7,877 crore, while there was an outflow of Rs 330 crore in close-ended equity plans.