Equity MFs’ AUM hits 10-month low of Rs 3.18 trillion in February
Asset base of equity mutual funds has declined to Rs 3.18 lakh crore at the end of February -- its lowest level in 10 months -- due to weak inflows in such schemes. Experts attributed the slump in assets under management (AUM) to sluggish inflow in equity and equity linked schemes.
Equity mutual funds witnessed an inflow of Rs 2,522 crore in February, the lowest level in the last 21 months, mainly on account of weakness in stock markets. This also marked the third successive month when the flows in local equity mutual funds (MFs) declined.
Equity schemes received funds to the tune of Rs 2,914 crore in January and Rs 3,644 crore in December. However, equity MFs saw an average monthly inflow of Rs 7,550 crore in 2015. The industry's equity AUM dropped from Rs 3.45 lakh crore in January this year to Rs 3.18 lakh crore last month, according to Association of Mutual Funds in India (AMFI). This was the lowest since April, when the assets base of equity mutual funds stood at Rs 3.07 lakh crore.
Despite moderation in inflows, local MFs continued to be biggest institutional investors in February, MFs made a net investment of Rs 5,946 crore in stock markets during the period under review. However, experts believe if the moderation in inflow persists, domestic MFs may not remain biggest institutional buyer of Indian equities in the near-term.
Meanwhile, the 30-share benchmark index Sensex plunged by 7.51 per cent last month.