Fund house assets dip 5% to ₹9.59 lakh cr in Sept

The assets under management of the mutual fund industry slipped by ₹53,409 crore last month to ₹9.59 lakh crore, as against ₹10.12 lakh crore logged in August.

The industry witnessed a net outflow of ₹69,664 crore last month as against ₹13,035 crore in August, according to the Association of Mutual Funds in India data. Redemption from liquid funds, which are short-term in nature, increased substantially to ₹67,318 crore as against ₹5,864 crore, while outflow from income funds moderated slightly to ₹10,567 crore (₹12,696 crore).

Fund flows into equity schemes increased to ₹7,789 crore (₹5,217 crore), even as the Sensex lost 238 points or 1 per cent last month. Balanced funds attracted investment of ₹732 crore (₹448 crore) in September. Gold ETFs registered a net outflow of ₹47 crore to ₹7,277 crore.

Income funds with assets under management of ₹4.61 lakh crore accounted for 45 per cent of the mutual fund industry, while liquid and equity funds followed with assets of ₹2.45 lakh crore and ₹2.34 lakh crore, respectively.

Nilesh Sathe, Director and Chief executive Officer, LIC Nomura Mutual Fund, said AUM of the MF industry may shrink in the coming months, due to the change in tax treatment of fixed maturity plans, which account for about 17 per cent of the total AUM. However, he added, fund flows into equity schemes would continue with the positive vibes in the market attracting more retail investors.