MF outflow of Rs 31,200 cr last month

The assets under management (AUM) of India's mutual fund sector slipped below Rs  13 trillion in November, down two per cent from October, to Rs 12.95 lakh crore from the earlier Rs  13.24 lakh crore.

The fall was mainly because of net outflows from liquid and money market schemes, of Rs 42,000 crore. A majority of the other asset classes saw positive inflow but in all, the sector ended with an outflow of Rs 31,196 crore.

The equity category had strong net inflow at Rs 6,349 crore, the highest in three months. The overall equity AUM (pure equity and equity-linked savings scheme funds) surpassed Rs 4 lakh crore, for the first time in the sector's history.

Noteworthy is that gross sales declined to a nine-month low of Rs  12,310 crore. If this trend continues, it is a cause of worry for the sector.

Balanced funds continued to do well, seeig net inflow of Rs 992 crore. Schemes other than Gold Exchange Traded Funds (ETFs) garnered a net sum of Rs 1,183 crore. Gold ETFs had a net outflow of Rs 40 crore.