Mutual Funds' asset base slips 2% in December

New Delhi: Mutual fund industry saw its asset base slip by 2 per cent to Rs 26.54 lakh crore at December-end, primarily on account of outflow from debt-oriented schemes, including liquid funds.

The 44-player industry logged an all-time high assets under management (AUM) of Rs 27.04 lakh crore at November-end, as compared to Rs 26.54 lakh crore by the end of last month, representing a decline of 2 per cent, according to data from the Association of Mutual Funds in India (Amfi).

Mutual fund houses witnessed an overall outflow of Rs 61,810 crore last month as compared to an inflow of Rs 54,419 crore in November.

Fund managers attributed the drop in the asset base to outflow of Rs 78,940 crore from debt-oriented schemes.

Among debt-oriented schemes, liquid funds, with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon, witnessed a pull out of over Rs 71,000 crore, the highest among the fixed-income segment last month.

Besides, overnight funds, which invest in securities with a maturity of one day, saw outflows of over Rs 8,800 crore.

However, banking & PSU funds, which have a high allocation to highest rated bonds, received funds to the tune of Rs 4,770 crore.

Naveen Kukreja, CEO at Paisabazaar.com attributed the decline in monthly asset base to sell-off in debt schemes.

Equity-oriented funds continued to attract investments tracking the surge in domestic markets in December.