Mutual funds AUM drops 12.5% to ₹ 22 trillion by Sep-end
According to Amfi data, mutual fund AUMs stood at ₹ 22.06 trillion at the end of September, as compared to a record ₹ 25.20 trillion in August end
New Delhi: Mutual funds’ asset base declined 12.5% to ₹ 22 trillion in September-end on the back of massive outflow from liquid funds and income schemes. According to Association of Mutual Funds in India (Amfi) data, the asset under management (AUM) of the industry, comprising 41 active players, stood at ₹ 22.06 trillion at the end of September, as compared to a record ₹ 25.20 trillion in August end.
The monthly drop in the asset base is mainly due to an outflow of ₹ 2.3 trillion from mutual fund schemes. This included ₹ 2.11 trillion withdrawal from liquid funds or money market segment which invest in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon.
In addition, income schemes—type of debt mutual funds that deliver a steady income—have seen a pullout of ₹ 32,504 crore. Besides, gold ETFs continued to see net outflow of ₹ 33 crore. However, equity and equity-linked saving scheme (ELSS) saw an infusion of ₹ 11,250 crore. Besides, balanced funds witnessed an inflow of ₹ 731 crore.
Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. The funds are invested in stocks, bonds and money market instruments, among others.
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed)