Page 15 - Banking Finance August 2019

MUTUAL FUND

MUTUAL FUND

NEWS
NEWS
NEWS
NEWS
NEWS

Axis Mutual Fund intro- Mutual Funds suffer nearly Rs 1.60 lakh cr outflow in
duces Axis Money Mar- June: AMFI data
ket Fund According to data by Association of Mutual Fund of India (AMFI), investors pulled
out Rs 1.60 lakh crore on a net basis from mu-
Axis Mutual Fund has launched Axis
Money Market Fund. The scheme is tual fund schemes in June against a net invest-
an open-ended debt fund which will ment of Rs 76,989 crore in May. The main rea-
invest in AAA and equivalent high son behind it is the persisting weak confidence
quality short term investments with in debt-oriented plans. The data reveals that
high grade short term rating. net outflows from debt-oriented schemes were
The scheme was benchmarked more than Rs 1.71 lakh crore in June against
against NIFTY Money Market index. inflows of Rs 70,119 crore.
The minimum application amount
Recently, the mutual fund industry has been grappling with redemption pres-
for this fund is Rs 5,000. The fund
sure in the wake of debt crises at various groups, including IL&FS, Essel and DHFL.
offers direct and regular plan, both
"The debt segment saw the largest outflow of Rs 1,71,349 crore as compared
with growth and dividend options. to Rs 70,119 crore inflow witnessed in May'19, as investors' confidence was
The fund will be managed by Devang
Shah, Deputy Head – Fixed Income dented after a series of defaults/delays by some popular names," Bajaj Capital
and Aditya Pagaria, Fund Manager – CEO Rahul Parikh said.
Fixed Income. The net outflows of mutual funds stood at Rs 1,59,814.40 crore in June. Debt-
“Axis AMC has always believed in of- oriented schemes witnessed a significant outflow with liquid funds being the
fering the best quality products to worst hit. Liquid funds alone witnessed an outflow of Rs 1.52 lakh crore. AMFI
our investors whatever their needs CEO N S Venkatesh said, "This is a usual quarter-end phenomena where the
be and to deliver consistent perfor- industry does witness temporary redemptions from liquid funds."
mance in every fund that we man- Despite the outflow, the AUM (Assets Under Management) for June 2019, stood
age. We believe that the Money higher at Rs 25.81 lakh crores, as compared to Rs 25.43 lakh crore for May
Market Fund will be a valuable addi- 2019, the AMFI said. "Stellar jump in the inflows into equity schemes over the
tion to our bouquet and will provide
our investors with a significant new last two months, especially after the decisive electoral verdict has helped re-
pose retail investor trust. Political stability, lower inflation coupled with RBI stance
tool to manage their short term in-
to lower interest rates leading to possible robust growth in the corporate earn-
vestment objectives,” said Chandresh
Kumar Nigam, MD & CEO, Axis AMC. ings is leading enhanced retail flows towards equity oriented schemes,"
Venkatesh said.

BANKING FINANCE | AUGUST | 2019 | 15