Investors pulled out Rs 54,54,650 crore from mutual funds in FY-09
Experts said the redemptions during the fiscal were mainly on the back of meltdown in stock markets, which led to investors pulling out money from equity funds.
By PTI |
NEW DELHI: The country's mutual fund industry witnessed hefty Rs 54,54,650 crore redemptions in the financial year 2008-09, as meltdown in the stock market and liquidity crunch made investors, including big corporate houses, pull out huge amounts from various schemes.
The 35 fund houses in the country saw redemptions of Rs 54,54,650 crore in the April-March period of 2008-09, against Rs 43,10,575 crore it saw during the year-ago period, as per data available on the Association of Mutual Funds in India (AMFI) website.
"During FY'08 the stock market was trading at higher levels and investors were putting in fresh money. But FY'09 saw decline in the AUM (assets under management) of the fund houses, as investors pulled out money amid liquidity concerns," Taurus Mutual Fund Managing Director R K Gupta said.
Experts said the redemptions during the fiscal were mainly on the back of meltdown in stock markets, which led to investors pulling out money from equity funds.
"Interest rate fluctuations and (the) inability of some fund houses to redeem money had led to a breakdown in investor confidence during the fiscal," Gupta said.
The 35 fund houses in the country saw redemptions of Rs 54,54,650 crore in the April-March period of 2008-09, against Rs 43,10,575 crore it saw during the year-ago period, as per data available on the Association of Mutual Funds in India (AMFI) website.
"During FY'08 the stock market was trading at higher levels and investors were putting in fresh money. But FY'09 saw decline in the AUM (assets under management) of the fund houses, as investors pulled out money amid liquidity concerns," Taurus Mutual Fund Managing Director R K Gupta said.
Experts said the redemptions during the fiscal were mainly on the back of meltdown in stock markets, which led to investors pulling out money from equity funds.
"Interest rate fluctuations and (the) inability of some fund houses to redeem money had led to a breakdown in investor confidence during the fiscal," Gupta said.
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