The mutual fund industry’s asset base has fallen by nearly ₹66,000 crore, to ₹22.6 lakh crore at the end of May, primarily on account of outflows from income and liquid schemes.
The assets under management (AUM) of the mutual funds (MF) industry, comprising 42 players, were at ₹23.25 lakh crore in April-end, according to the latest update with the Association of Mutual Funds in India (AMFI).
Overall, investors withdrew a net ₹50,000 crore from MF schemes last month as compared to a net infusion of ₹1.4 lakh crore in April. In March, redemptions of ₹50,752 crore were seen due to new tax on long-term equity gains.
Industry insiders attributed the drop in assets base to pull outs from income, and liquid or money market categories.
The liquid funds --which invest in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon -- witnessed an outflow of ₹46,724 crore.
Further, income funds which invest in a combination of government securities saw a withdrawal of over ₹20,000 crore. In contrast, investors poured in more than ₹20,000 crore in equity schemes.
{{/usCountry}}Further, income funds which invest in a combination of government securities saw a withdrawal of over ₹20,000 crore. In contrast, investors poured in more than ₹20,000 crore in equity schemes.
{{/usCountry}}MFs 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.