It happens due to high redemptions in liquid funds by big corporate for the year closing. "Money market fund's portfolio comprises short-term (less than one year) securities representing high-quality, liquid debt and monetary instruments.Overall, the asset base of the country's fund houses dropped to Rs 13.81 lakh crore last month, from Rs 14.22 lakh crore in April-end. Like the trend of many years, even this year also, more than 90 per cent of the redemptions for the March is in liquid funds," Bajaj Capital Senior VP and National Head-Mutual Funds Anjaneya Gautam said. The category saw an infusion of Rs 4,721 crore. "Every year in March, high outflow is a routine phenomenon and we should not read much into it.

Source: Economic Times June 10, 2016 08:23 UTC