Mutual Funds witness outflow of Rs 34,000 cr in Sept

Investors have pulled out nearly Rs 34,000 crore from various mutual funds in September as against high investments in such schemes in the preceding month.

The huge withdrawal of funds during September followed a net inflow of Rs 23,713 crore in August.

As per the latest data available with market regulator Securities and Exchange Board of India (Sebi), investors have withdrawal a net amount of Rs  33,910 crore in September in various mutual fund (MF) schemes.

This takes the MFs' net mobilisation of funds from investors in the first-six months of the current fiscal at about Rs 35,342 crore.

Mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.

At gross level, mutual funds mobilised Rs 8.67 lakh crore in September, but also witnessed redemption worth Rs 9 lakh crore -- resulting into a net outflow of Rs 33,910 crore.

This has brought down the total assets under management of mutual funds to Rs 7.46 lakh crore as on September 30 from Rs 7.66 lakh crore in the previous month.

The huge outflow coincides with 494 points or 2.6 per cent rise in the benchmark S&P BSE Sensex during the period under review.

"During the financial year 2013-14 so far (Apr-Sept), mutual funds net mobilised Rs 35,342 crore as compared to Rs 1,01,875 crore mobilised in corresponding period of 2012-13.

In the entire fiscal 2012-13, mutual funds had garnered Rs 76,539 crore from investors while a net amount of over Rs 22,000 crore moved out of the mutual funds' kitty during the preceding fiscal.

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