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Last month, from a mutual fund (debt mutual fund) scheme that invests in bond securities, Rs. 25,872 crore was withdrawn. This is due to the cautious attitude of investors and the current interest rate situation in the US.
According to Association of Mutual Funds in India (Amfi) data, 9 out of 16 bond categories had net outflows during the month under review. Most of the net outflows were seen in categories with tenors of less than one year such as cash, ultra short and short term. Apart from this, the banking and PSU categories also witnessed significant net outflows.
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According to the data, bond mutual funds in August saw Rs. 25,872 crore was withdrawn, while in the previous month Rs. 61,440 crore was invested.
Melvin Santarita, Analyst-Manager Research, Morningstar India, said, “Amidst the current interest rate situation and uncertainty about the direction of interest rates in the country, it seems that many investors have adopted a cautious approach. Investors are waiting for further cues on interest rates. He also said that in such circumstances, investors can also move from bonds to stocks.