Mumbai: India’s mutual fund assets under management (AUM) plunged 4.5% to 8.08 trillion in the three months ended 30 September because of market volatility and weak investor sentiment, according to rating company Crisil Ltd.

The report, based on the latest figures put out by Association of Mutual Funds in India (Amfi), said the 38,400 crore fall in AUM during the quarter was the steepest decline since the three months ended December 2010.

Money market and ultra short-term debt funds’ AUM declined by 23,100 crore and 18,300 crore respectively, while equity funds lost 12,700 crore during the quarter. Fixed maturity plans, or FMPs, saw inflows of 14,200 crore on the back of rising yields during the quarter, said a Crisil statement.