MFs assets fall in November on equity decline

The domestic asset management industrywitnessed a value erosion of 2 per cent in its monthly assets due to thevolatile conditions in the equity markets, according to credit ratings agencyCrisil.

 

As a result, the month-end asset value of the industrydeclined to Rs 6.82 lakh crore in November, despite an inflow of around Rs38,000 crore into the segment during the month.

"The fall in assets worth Rs 13,800 crore was primarilydue to mark-to-market losses in the equity category, which declined by Rs15,000 crore in the month," Crisil said in a report today.

Equity funds saw a sharper decline of 8 per cent or Rs15,000 crore in the asset value to Rs 1.7 lakh crore due to a steep fall in theunderlying equity markets in the month, it noted.

During November, the NSE benchmark index Nifty fell around 9per cent due to weak global cues and the resultant downbeat domestic sentiment.

The category also witnessed marginal outflows of Rs 5 crorein the month for first time in four months, Crisil said.

Significantly, despite the rise in prices of the yellowmetal, gold ETFs saw outflows for the first time in 18 months, the report said.

The category registered outflows of Rs 22 crore in the monthcompared to inflows of Rs 455 crore in October.

The 50 fixed income plans launched during the month amassedRs 8,900 crore, while other debt and equity schemes garnered just Rs 100 croreduring the period under review.