Equity funds experienced net inflows of Rs5.2 billion for the second consecutive month, while fixed income funds witnessed outflows of Rs989 billion – the worst ever since the data on mutual funds were made available in October 1999. Equity inflows are down by 92% on a 12-month basis, compared to the same period last year. By the end of March, equity assets under management stood at US$22.2 billion, accounting for 3.7% of the country’s market cap and 60% below its December 2007 peak.
After experiencing record inflows in the first two months of 2009, the trend for fixed income flows reversed. On a 12-month trailing
basis, fixed income funds have experienced outflows of Rs322 billion compared to inflows of Rs950 billion for the preceding 12-months.