MFs see assets shrink in Q1 despite record gains for market indices

The average asset base in June quarter stood at Rs 24.6 trillion, as against Rs 27 trillion in previous quarter, translating into a decline of 8.9 per cent

Heavy outflows from debt schemes, combined with the slowdown in equity flows, have hurt the asset size of several fund houses. According to data from the Association of Mutual Funds in India (Amfi), 38 of the 40 mutual funds (MFs) reported a decline in average assets for the June quarter.

The decline in assets under management (AUM) has come at a time when the frontline indices — Sensex and Nifty — have seen their best quarter in 11 years.

“New investors, who have not gone through multiple equity market cycles, would have taken an exit amid the market recovery. Fund