The asset base of mutual fund (MF) industry declined by nearly Rs 21,000 crore to Rs 22.2 lakh crore at the end of February, mainly due to outflow from debt segment. In comparison, the assets under management (AUM) of the MF industry, comprising 42 players, were at an all-time high of Rs 22.41 lakh crore at the end of January, as per the data of the Association of Mutual Funds in India (Amfi). Industry experts attributed the monthly drop in the asset base to lower money infusion in overall mutual fund segments in February. Investors poured in a net sum of over Rs 12,000 crore in mutual fund schemes last month as compared to an inflow of Rs 1.06 lakh crore in January. Besides, income funds -- emphasizes current income, either on a monthly or quarterly basis, as opposed to capital appreciation and usually hold a variety of government, municipal and corporate debt obligations-- witnessed a pull out of Rs 9,800 crore. In addition, gold exchange traded funds (ETF) saw an outflow of Rs 94 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.