NEW DELHI: Mutual funds’ asset base declined 12.5% to Rs 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 Rs 22.06 trillion at the end of September, as compared to a record Rs 25.20 trillion in August end.
The monthly drop in the asset base is mainly due to an outflow of Rs 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 Rs 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 Rs 11,250 crore. Besides, balanced funds witnessed an inflow of Rs 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.
