Mutual Funds’ Asset under Management Declined 12.5 Per Cent
As per the data of the industry, Mutual funds’ asset base declined 12.5 per cent to Rs 22 lakh crore at September-end over the previous month due to massive outflows from liquid funds and income schemes.
The asset under management of Mutual Funds, comprising 41 active players, stood at Rs 22.06 lakh crore at the end of September against Rs 25.20 lakh crore at August-end, the Association of Mutual Funds in India data showed.
The monthly drop in the asset base is mainly due to an outflow of Rs 2.3 lakh crore from mutual fund schemes.
This included Rs 2.11 lakh crore withdrawals from liquid funds or money market segment which invest in cash assets such as treasury bills, certificates of deposit and commercial paper for a shorter horizon.
Additionally, income schemes — a type of debt mutual funds that deliver a steady income — have seen a pullout of Rs 32,504 crore. Apart from this, gold ETFs continued to see a net outflow of Rs 33 crore.
Director – Manager Research at Morningstar stated that the income funds have witnessed outflows, which can be partially attributed to negative sentiments due to the IL&FS episode.