The sharp correction in the equity market that started in September 2024 halted a 10-quarter streak of asset growth for mutual funds (MFs) in the January-March quarter (Q4) of 2024-25 (FY25).
Assets under management (AUM) of MFs fell from ₹68.6 trillion in the previous quarter to ₹67.4 trillion in Q4FY25, a decline of 1.7 per cent.
MF assets fluctuate on the basis of two key factors: net inflows and outflows and the mark-to-market impact of market movements on underlying assets.
With 54 per cent of MF AUM invested in domestic equity-oriented schemes (active and passive) as of February, equity market

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