New MF schemes mop up Rs 34,880 cr in March
Total collections under new schemes were at Rs 34,880 crore and net outflows through redemptions stood at Rs 24,421 crore, reports MC Vaijayanthi.Updated: Apr 14, 2007, 02:43 IST
While income and growth schemes of mutual funds had net inflows of Rs 21,667 crore and Rs 2,345 crore respectively in March, liquid funds were drained out with massive outflow of Rs 50,924 crore. Total collections under new schemes were at Rs 34,880 crore and net outflows through redemptions stood at Rs 24,421 crore.
Heavy redemptions in the liquid schemes is explained as pure fiscal year end phenomenon when companies draw out money parked with funds for tax payment and reshuffling their portfolio.
“Investors who park funds through money market mutual funds would also have seen opportunity to move part of the funds to FMPs,” said Raghavendra Nath, vice president, marketing and strategy at Birla Sun Life Mutual Fund.
Close ended schemes, basically the fixed maturity plans continued to be the favourites mopping up Rs 29,232 crore through 95 new schemes launched in March. As against that, five open ended schemes collected Rs 2480 crore. Growth, balanced as well as ELSS schemes put up a negligible show last month. “FMP’s launched in March provide investors double indexation benefit and hence its popularity,” said Ami Doshi, analyst at Credence Analytics.
Outflows from liquid schemes in March last year was only Rs 11,652 crore. Number of closed ended schemes launched at the same was also lower at 40 schemes collecting Rs 12,447 crore. “FMP’s attractiveness will remain as it gives best yields and efficient tax benefits,” said Nath.