Balanced schemes are facing redemption pressure amid low dividend payouts

Within balanced schemes, the dividend option was a big draw for investors

Balanced schemes, which invest in both equities and debt, are facing redemption pressure amid low dividend payouts and weak returns. In February, the category saw outflows of Rs 1,077 crore, taking their two-month net redemptions tally past Rs 2,000 crore.

Industry players say more money could flow out of these schemes. “The balanced schemes are likely to remain under pressure given the lower dividend payouts. Some schemes in the category have given negative returns. This has taken investors by surprise,’’ said Aashish Somaiyaa, MD & CEO, Motilal Oswal Mutual Fund (MF).

Within balanced schemes, the dividend option was a big