NEW DELHI: Investors continued to withdraw from mutual funds focused on investing in fixed-income securities for the third consecutive quarter and pulled out over Rs 70,000 crore in April-June due to high inflation and an increasing rate cycle.
"In the next (September) quarter, it is safe to assume that monetary conditions will be tighter in terms of lower liquidity and higher regulatory rates, both of which should see further reduction in MF debt corpuses," Trust Mutual Fund CEO Sandeep Bagla said.
Interest rate will be the major factor to dictate flow in debt MFs in coming quarters. Once rates start stabilising, inflows can be expected, Ankit Yadav of Market Maestroo said.
The latest outflow has pulled down the assets managed by fund managers for debt fixed-income funds by 5% to Rs 12.35 lakh crore at June-end, Amfi data showed. agencies
