Equity mutual funds record Rs2,016 crore in outflows 

After sailing in positive territory last month, equity mutual funds have again witnessed an outflow in March. Equity schemes recorded Rs2,016 crore of redemption in March compared to Rs1,514 crore net inflow in February while the BSE Sensex gained 7% during the same period. The assets under management (AUM) of equity schemes has increased 3% in March at Rs1,74,054 crore from Rs1,68,672 crore last month while the combined AUM of all schemes declined 20% in March (Rs63,979 crore), from Rs7,66,869crore in February 2010.

Redemptions of all combined schemes jumped 81% at Rs99,35,942 crore in FY09 compared to Rs54,54,650 last year. March witnessed Rs11,27,635 crore redemptions, up 50% from February which saw redemptions of Rs7,52,798 crore. There is a sharp increase of 51% redemption in March 2010 compared to the corresponding period last year.

“Markets are improving so there is some profit booking. Very restrictive NFOs were allowed during this year. There was also a pressure on commission paid to distributors,” said D Mohanty, country head (Retail), UTI Asset Management Company Ltd (UTI).—  Ravi Samalad