Mutual Fund Industry's AUM Dips 1.55 Percent
Mumbai: Assets under management (AUM) of the mutual fund industry fell 1.5 per cent to 
8.14 lakh crore in February from the record high in January due to mark-to-market fall in equity oriented mutual funds, a report by Crisil Research said.
"The fall in AUM was attributed to the mark to market fall in assets of equity oriented mutual funds following the 6 per cent decline in the CNX Nifty during the month," the report said.
Assets under the income funds also declined due to tight liquidity conditions prevailing towards the end of this financial year, it added.
Also, the inflows saw sharp drop in net inflows of 3,600 crore in February as compared to Rs 60,700 crore in the previous month.
Meanwhile, the AUM of equity funds declined to 1.76 lakh crore, which was down over 7 per cent or 13,800 crore, marking the largest decline in the past 15 months.
"Month end AUM of equity funds declined to 1.76 lakh crore (down over 7 per cent or Rs 13,800 crore) the largest decline ,led by mark to market losses in the underlying assets and marginal outflows," the report said.
However, net outflows from the category slowed to 160 crore in February, which was the lowest in the past nine months.
On income funds front, the AUM in this category fell by 1.4 per cent to 3.93 lakh crore in February, primarily due to outflows of 5,300 crore from the category.
"Tight liquidity conditions towards the financial year end saw redemptions from short maturity debt funds. While FMPs (fixed maturity plans) have seen redemptions of 1,600 crore, these have been balanced by inflows of 2,100 crore into interval funds," the report said.
The rating agency also pointed out that major share of inflows of 8,600 crore came into the liquid or money market funds.
"Inflows in the category are part of the cyclical inflow that occur in the first two months of the quarter - before being withdrawn for quarter end requirements in the last month of the quarter," it said.
Referring to gilt funds, the report said that these funds continued to see inflows for the sixth consecutive month in February despite being lower than the previous month.
"Inflows were lower at over 400 crore in February compared with 1,100 crore in January," it said adding that the category has become attractive in the recent months on expectation of easing interest rates.
Interestingly, gold ETFs saw outflows for the first time since 2012 with the AUM falling by 4 per cent to 11,600 crore due to mark to market losses and outflows.
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