New Delhi, Jun 8 (PTI) Mutual fund industrys asset base has fallen by nearly Rs 66,000 crore to Rs 22.6 lakh crore at the end of May, primarily on account of outflow from income and liquid schemes.
The assets under management (AUM) of the MF industry, comprising 42 players, were at Rs 23.25 lakh crore in April-end, according to the latest update with Association of Mutual Funds in India (Amfi).
Overall, investors withdrew a net Rs 50,000 crore in MF schemes last month as compared to a net infusion of Rs 1.4 lakh crore in April.
In March, redemptions of Rs 50,752 crore were seen due to new tax on long-term equity gains.
Industry insiders attributed the drop in assets base to pull outs from income and liquid or money market categories
The liquid funds --which invest in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon -- witnessed an outflow of Rs 46,724 crore.
Further, income funds which invest in a combination of government securities saw a withdrawal of over Rs 20,000 crore.
In contrast, investors poured in more than Rs 20,000 crore in equity schemes.
MFs are investment vehicles made up of a pool of funds collected from a large number of investors. The funds are invested in stocks, bonds and money market instruments, among others. PTI SP SA SA
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today