32722 crore withdrawn from mutual funds???
32722 crore withdrawn from mutual funds???
There has been a withdrawal of Rs 32,722 crore in May from the fixed income products of Mutual Funds. The withdrawal has increased after the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india (RBI) announced an increase in the key policy rate repo (Repo Rate Hike) and gradual withdrawal of the accommodative stance to control rising inflation. According to the data of the Association of Mutual Funds in india (AMFI), earlier in april, it had an investment of Rs 54,656 crore. Apart from this, the number of 'folios' also came down from 73.43 lakhs to 72.87 lakhs between april and May this year.
Fixed-income products like bonds are considered a safe option for investment during market volatility. However, an increase in interest rates, volatility in the macroeconomic environment, and higher returns may affect the investor's stance on investing in the bond market. Kavita Krishnan, Senior Analyst (Research Manager), Morning Star india, said the increase in policy rates was due to factors such as the Russo-Ukraine war, along with rising food, commodity, and fuel prices. The focus of the Reserve bank is now on bringing inflation under control. Due to this, there is a possibility of a further increase in the policy rate.RBI hikes repo rateIn the meeting held without a schedule, the RBI not only increased the repo rate by 0.40 percent but also increased the cash reserve ratio (CRR) by 0.5 percent to 4.5 percent. In the meeting held on May 4, RBI had also insisted on withdrawing the liberal stance to bring inflation under control. According to the data, 12 out of 16 fixed-income products saw capital outflows in May.
There has been a withdrawal of Rs 32,722 crore in May from the fixed income products of Mutual Funds. The withdrawal has increased after the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india (RBI) announced an increase in the key policy rate repo (Repo Rate Hike) and gradual withdrawal of the accommodative stance to control rising inflation. According to the data of the Association of Mutual Funds in india (AMFI), earlier in april, it had an investment of Rs 54,656 crore. Apart from this, the number of 'folios' also came down from 73.43 lakhs to 72.87 lakhs between april and May this year.
Fixed-income products like bonds are considered a safe option for investment during market volatility. However, an increase in interest rates, volatility in the macroeconomic environment, and higher returns may affect the investor's stance on investing in the bond market. Kavita Krishnan, Senior Analyst (Research Manager), Morning Star india, said the increase in policy rates was due to factors such as the Russo-Ukraine war, along with rising food, commodity, and fuel prices. The focus of the Reserve bank is now on bringing inflation under control. Due to this, there is a possibility of a further increase in the policy rate.RBI hikes repo rateIn the meeting held without a schedule, the RBI not only increased the repo rate by 0.40 percent but also increased the cash reserve ratio (CRR) by 0.5 percent to 4.5 percent. In the meeting held on May 4, RBI had also insisted on withdrawing the liberal stance to bring inflation under control. According to the data, 12 out of 16 fixed-income products saw capital outflows in May.