A Balasubramaniam, CEO of Birla Sunlife AMC says lack of lack conviction is preventing inflows into equity funds. "We have not seen any significant inflows in mutual funds," he says adding, "positive inflows were seen only in the month of May."
According to data released by the Association of Mutual Funds in India (AMFI), the fund industry shed around Rs 24,000 crore during the month of June, which led to decline in the overall asset base to Rs 6,88,825 crore. Most fund categories witnessed outflows during the month.
Liquid funds saw a maximum outflow worth over Rs 25,000 crore, followed by Gold ETFs (Rs 227 crore), Equity (Rs 186 crore), ELSS (Rs 100 crore), and Fund of Funds (Rs 44 crore).
However, Balasubramanian says the mutual fund industry has not seen any significant redemption pressure. "We have seen significant flows in the debt fund with a two to three year horizon," he told CNBC-TV18.
Below is the edited transcript of Balasubramanians interview with CNBC-TV18.