The mutual fund industry witnessed a drop of nearly 5 per cent in assets under management (AUM) to Rs 12.55 lakh crore in August, mainly on account of fall in inflow into such schemes.
The assets base of the country’s 44 fund houses declined from an all time high of Rs 13.17 lakh crore in July to Rs 12.55 lakh crore last month, as per the latest data.
Industry experts attributed the fall in asset base to redemptions from investors during the month amid the volatility in the stock market.
Overall inflow in mutual fund schemes have fallen to Rs 1.58 lakh crore at the end of last month from Rs 2.05 lakh crore at July-end.
However, fund managers have purchased shares worth a staggering Rs 10,533 crore last month even though overseas investors pulled out a record money from the stock market.
They made intensive buying in last week of August when the domestic market crashed due to the rout in Chinese equities.
The sell-off by overseas investors in the Indian equity markets has meant an opportunity to MF managers.
Mutual Funds collect money from investors and buy stocks, including IPOs (primary market) and bonds. PTI SP SA 09071613
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