The Indian mutual fund industry’s assets under management (AUM) declined by more than 6% at the end of July compared to last month as RBI’s liquidity tightening measures led to a huge outflows from the liquid funds category. For the industry, the total AUM fell below the R8 lakh-crore mark for the first time since March at R7.61 lakh crore.
According to a Crisil research on Amfi’s monthly numbers, the total outflow for the industry in July was R50,600 crore. Liquid funds — which track money markets — lost R45,300 crore as they ended the month with an AUM of R1.29 lakh crore. The category’s AUM declined 21% on a monthly basis. Meanwhile, the month saw renewed interest in fixed maturity plans (FMPs) on account of rise in bond yields. FMPs are closed-ended funds which lock-in high yields over the time period of the scheme. Out of the 40 new fund offers (NFOs), 37 belonged to this category.