Arbitrage Mutual Funds See Tremendous Outflows In June The arbitrage mutual funds category has witnessed a net outflow of 1,423 crore Rupees in June 2018, based on the data available from the Association of Mutual Funds in India. In fact, this is the largest outflow in this category during this fiscal year. The total redemption in the arbitrage category of mutual funds was 5,357 crore Rupees in June 2018, while it was 3,768 crore Rupees and 3,778 crore Rupees in May 2018 and April 2018, respectively. In the past few months, the MF category has seen drop in money, however the net inflows have been satisfactory. The net inflow was 1,238 crore Rupees in April, and it decreased 720 crore Rupees in May. According to Lakshmi Iyer, Chief Investment Officer (Debt) and Head Products, Kotak Mutual Fund, there have been no enthusiastic inflows in arbitrage mutual funds category at least in the past three months. Few quarter-end redemptions must have been added to the arbitrage funds category, said Iyer. In June, the net outflows have been about 1,423 crore Rupees from the arbitrage category. There have been outflows from this category since January 2018, said Iyer. Experts in the field feel that one of the causes for the outflows is the arbitrage categories’ taxation change. In the Budget 2018, the financial minister had declared the introduction of 10 percent tax on dividends in equity schemes as well as on long-term capital gains. Previously, the arbitrage category had an advantage over the debt schemes as they were taxed similar to that of the equity schemes. Hence, long-term capital gains tax was nil. The Chief Investment Officer (Debt) and Head Products, Kotak Mutual Fund, also said that there was no tax earlier, and the arbitrage category is affected in some way by the 10 percent taxation. According to Vidya Bala, Head of Mutual Fund Research, FundsIndia, the outflows in the category may continue in future if the interest rates continue to go up. However, Iyer feels that there is no reason to avoid investing in arbitrage mutual funds, reported The Economic Times. The post Arbitrage Mutual Funds See Tremendous Outflows In June appeared first on OWLT Market.

The arbitrage mutual funds category has witnessed a net outflow of 1,423 crore Rupees in June 2018, based on the data available from the Association of Mutual Funds in India. In fact, this is the largest outflow in this category during this fiscal year.

The total redemption in the arbitrage category of mutual funds was 5,357 crore Rupees in June 2018, while it was 3,768 crore Rupees and 3,778 crore Rupees in May 2018 and April 2018, respectively.

In the past few months, the MF category has seen drop in money, however the net inflows have been satisfactory. The net inflow was 1,238 crore Rupees in April, and it decreased 720 crore Rupees in May.

According to Lakshmi Iyer, Chief Investment Officer (Debt) and Head Products, Kotak Mutual Fund, there have been no enthusiastic inflows in arbitrage mutual funds category at least in the past three months. Few quarter-end redemptions must have been added to the arbitrage funds category, said Iyer.

In June, the net outflows have been about 1,423 crore Rupees from the arbitrage category. There have been outflows from this category since January 2018, said Iyer.

Experts in the field feel that one of the causes for the outflows is the arbitrage categories’ taxation change. In the Budget 2018, the financial minister had declared the introduction of 10 percent tax on dividends in equity schemes as well as on long-term capital gains.

Previously, the arbitrage category had an advantage over the debt schemes as they were taxed similar to that of the equity schemes. Hence, long-term capital gains tax was nil.

The Chief Investment Officer (Debt) and Head Products, Kotak Mutual Fund, also said that there was no tax earlier, and the arbitrage category is affected in some way by the 10 percent taxation.

According to Vidya Bala, Head of Mutual Fund Research, FundsIndia, the outflows in the category may continue in future if the interest rates continue to go up. However, Iyer feels that there is no reason to avoid investing in arbitrage mutual funds, reported The Economic Times.

The post Arbitrage Mutual Funds See Tremendous Outflows In June appeared first on OWLT Market.

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