Mutual funds AUM drops 12.5% to 22 trn in Sept-end on massive outflow

Mutual funds' asset base declined 12.5 per cent 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 Rs 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 325.04 billion. Besides, gold ETFs continued to see net outflow of Rs 330 million.

However, equity and equity-linked saving scheme (ELSS) saw an infusion of Rs 112.50 billion. Besides, balanced funds witnessed an inflow of Rs 7.31 billion.

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.