Jun 29: The assets under management of mutual funds fell 2.83% or by Rs 65,927 cr to Rs 22.60 lakh in May compared with the record high of Rs 23.26 lakh crore in April. The decline was driven by outflows in liquid and income funds.
Though equities witnessed inflows in May for the 26th consecutive month, investors pumped Rs 12,070 crore into the category in May, following an inflow of Rs 12,409 crore in April. The category’s asset base fell Rs 2,113 crore, or 0.26%, to Rs 7.98 lakh crore, weighed by mark-to-market (MTM) losses. Balanced funds witnessed an inflow of Rs 2,666 crore in May, compared with an inflow of Rs 3,500 crore in April; however, the category’s asset base declined Rs 3,311 crore, or 1.83%, to Rs 1.78 lakh crore, compared with the record high of Rs 1.81 lakh crore in April.
Debt funds witnessed an outflow of Rs 20,407 crore in May, as against an inflow of Rs 5,220 crore in April. As a result, the category’s AUM declined Rs 5,194 crore, or 0.66%, to Rs 7.85 lakh crore from Rs 7.90 lakh crore in April.
Gilt funds recorded an outflow of Rs 428 crore in May, compared with an outflow of Rs 436 crore in April. Weighed by MTM losses, the category’s AUM declined faster by Rs 845 crore, or 7.77%, to Rs 10,035 crore in May, marking the ninth straight month of decline in assets.
Liquid funds witnessed an outflow of Rs 46,724 crore in May, as against an inflow of Rs 1.16 lakh crore in April. As a result, the category’s AUM declined Rs 58,415 crore, or 12.79%, to Rs 3.98 lakh crore in May. ● Among regulatory developments, the Securities and Exchange Board of India (SEBI) has asked fund houses to follow the ‘best practices’ guidelines issued by the Association of Mutual Funds of India (AMFI).
The SEBI has lowered the ‘additional expense’ charged by mutual funds to 5 basis points to help increase the penetration of such products among investors. The SEBI has asked fund houses to disclose the total expense charged to customers for all schemes under a separate head on a daily basis on their and AMFI websites.