Liquid fund investors were seen taking money away in the month of June as corporations geared up to deal with working capital requirements at the end of the first quarter of this fiscal year. After witnessing healthy inflows of Rs 62,000 crore and Rs 68,000 crore in the months of April and May, liquid funds saw outflows of Rs 44,000 crore in June. Experts say the move reflects the growing need for capital by corporations as the quarter ended and is also a result of the imposition of stamp duty on mutual fund purchases. With a 0.005% stamp duty to be levied on every mutual fund purchase, it could soon result in more and more money being taken away from liquid funds.
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