Domestic MF AUM declines by 4 per cent.
The latest data by industry body, Association of Mutual Funds in India (AMFI) shows that asset under management (AUM) of the domestic mutual fund has declined by around 3.8% month on month basis. For the month of September 2019, the total AUM of the MF industry is Rs 24.50 lakh crore, compared to Rs 25.47 lakh crore in the month of August 2019.
The fall in the AUM was primarily due to outflow from debt-oriented funds. Debt funds saw an outflow of Rs 1.6 lakh crore in the month of September 2019. In the last month (August 2019) debt funds saw an inflow of Rs 91,126 crore. The major outflow was from liquid funds that saw an outflow of Rs 1.4 lakh crore. One of the reasons for such huge outflow was due to quarter ending and tax payments by corporates.
Even in case of equity dedicated mutual fund, there was a reduction in the net inflows in the month of September 2019, however, the inflows were positive. Total inflows in equity dedicated funds were Rs 6609 crore compared to Rs 9152 crore in the previous month, a fall of 28 per cent. Within equity, large-cap and multi-cap dedicated funds continue to see maximum inflows. Dividend yield funds continue to see the outflow. Another major category from where investor exited in the month of September 2019 was Sectoral/Thematic funds.
Hybrid funds also witnessed de-growth in the inflows and Aggressive Hybrid Fund category saw an outflow of Rs 1930 crore.