Liquid funds of mutual funds have seen massive outflows in the wake of the IL&FS crisis and the liquidity fears following it. CAMS data shows cash plans, or liquid funds, saw outflows of Rs 69,694 crore in September. Ultra liquid schemes also suffered net outflows of Rs 19,479 crore last month. This apart, all categories in the debt segment also saw outflows, except fixed maturity plans.
CAMS is a mutual fund registrar that covers almost 85 per cent of the industry flows. Industry veterans said mutual funds faced huge redemption pressure last month after liquidity in the banking system tightened and created panic in markets. The liquidity crisis was largely attributed to the advance tax payments and IL&FS defaulting on interest payments on commercial papers on September 17.
The 42-player mutual fund industry manages Rs 13.73 lakh crore of fixed income assets, of which Rs 2,700 crore of bonds and commercial papers were issued by IL&FS and its subsidiaries, according to mutual fund’s monthly portfolio disclosures in August. September data is yet to be released.