Important information for mutual fund investors, withdrawal of 1.2 lakh crores in March quarter from this fund category, invest carefully
1.15 lakh crore outflow in the month of March only.
According to the report of Morningstar India, in the March quarter, investors have withdrawn a total of 1.2 lakh crores from debt mutual funds. The report said that there have been huge outflows in segments like liquid, short duration and corporate bonds.
If you are a mutual fund investor (Mutual Fund Investors) then you must have known about debt mutual funds. It is also called fixed income fund. There is a fixed return on investing in it. According to the latest report of Morningstar India, in the March quarter debt mutual fund ,Debt Mutual Funds) investors have made a net withdrawal of 1.2 lakh crores. Investors have made massive withdrawals from liquid, short duration, corporate bond funds. After this withdrawal, the total withdrawal from debt funds in the financial year 2021-22 stood at Rs 68471 crore. Prior to that, in the financial year 2020-21, a total investment of Rs 2.37 lakh crore came in this fund. Earlier in the December quarter, a total investment of 21277 crores came in debt mutual funds.
At present, there are 16 types of debt mutual fund categories in our country. Of these, 15 funds were withdrawn on a net basis in the March quarter. 7802 crore investment came in the overnight fund segment. On a monthly basis, a total investment of 5087 crores came in the debt mutual fund in the month of January. There was an outflow of 8274 crores in February, while in the month of March there was a total outflow of 1.15 lakh crores.
There is pressure of withdrawal in the March quarter
Morningstar India said that withdrawals in the March quarter are not new. Withdrawals from debt funds take place in the March quarter, as institutional investors make massive withdrawals. Institutional investors withdraw from liquid funds, ultra short funds and money market because they have to pay tax. Tax funding is done from here.
Debt mutual fund investment down to 13 lakh crore
After this withdrawal, the figure of investment in debt mutual funds in the country came down to Rs 13 lakh crore in March 2022. This figure stood at Rs 14.05 lakh crore at the end of the December quarter. In the debt fund category, liquidity, ultra-short, money market and overnight fund categories contribute close to 50 per cent.
Continuous withdrawal from short duration fund
Withdrawals have been made for the fifth consecutive quarter from the short duration fund. In the March quarter, 24035 crores have been withdrawn from this category. After this, 23122 crores have been withdrawn from the Corporate Bond Fund. 18728 crores have been withdrawn from Liquid Fund.
63507 crore investment came in equity fund
In the March quarter, investors invested 63057 crores in Equity Mutual Funds. Despite the volatility in the global and domestic markets, investors have bet on the Indian market. Overall, 3900 crores were withdrawn from the mutual fund industry in the March quarter. A total investment of 81915 crores came in the December quarter.