AUM slips 4.6% but inflows in equity schemes continue

Amidst rising global uncertainty, falling stock markets and concerns over interest rate hike in the US, the assets under management of the Indian mutual fund industry fell Rs 61,761 crore or 4.6 per cent in August and amounted to Rs 12.55 lakh crore, down from an all time high of 13.17 lakh crore in July 2015.

The fall in AUM was led by outflow of funds from the liquid and money market funds. The net outflow from such schemes amounted to Rs 70,489 crore in the month as concerns over liquidity and credit risk mounted.

However, despite a fall in stock markets, the inflow into equity schemes continued to rise. The net inflow into equity schemes of mutual funds amounted to Rs 8,760 crore in August, taking the aggregate for the five month period between April and August 2015, to Rs 46,855 crore. The net investment also continued to rise in balanced funds and equity-linked savings schemes during the month.

The net inflow into balanced schemes for the month stood at Rs 1,425 crore.