Mumbai: The mutual fund industry's average net asset under management (AUM) shrunk by over Rs 18,000 crore in August to Rs 25.63 lakh crore from Rs 25.81 lakh crore in July as the value of equity assets came down versus the previous month.
Data from the Association of Mutual Funds in India (Amfi) shows total equity assets were down in August in growth/equity-oriented schemes by over Rs 28,000 crore to Rs 6.78 lakh crore, from Rs 7.06 lakh crore in July 2019. In hybrid schemes, too, the total assets were down to Rs 3.39 lakh crore from Rs 3.42 lakh crore.
Total mutual fund industry AUM fell on a net basis despite more than Rs 1 lakh crore inflows coming in during the month.
Equity markets were volatile in August with the Sensex touching a low of 36,472 on August 22, as the stocks in the broader market saw huge price erosion.
Higher inflows of Rs 91,126 crore in income/debt funds (Rs 61,845 crore in July) and Rs 9,152 crore in equity funds (Rs 8,112 crore) were offset by the decline in total equity assets.
On the debt side, liquid funds received the highest inflows of Rs 79,428.20 crore while credit risk fund saw outflows of Rs 2,269.64 crore. Hybrid fund inflows were down to Rs 4,946 crore from Rs 7,393 crore.
Commenting on the August data, N S Venkatesh, CEO, Amfi, said, “Retail investor interest in equity mutual funds continues to be steady, displaying maturity, despite uncertain economic and volatile market situation. Net inflows, largely in all categories of equity funds, especially in small and mid-cap funds, as also in ELSS(equity linked savings scheme) segment, signify heightened confidence and interest in emerging businesses and disciplined tax planning.”
Equity exchange traded funds (ETFs) saw outflow of Rs 1,717.55 crore....