Asset base of equity mutual funds has declined to Rs3.45 lakh crore, its lowest level in five months, at the end of January due to weak inflows in such schemes. Prior to this decline, asset base of equity MFs has been continuously rising since August last year.
Market experts attributed the slump in assets under management (AUM) to sluggish inflow in equity and equity linked schemes. Equity mutual funds witnessed an inflow worth just Rs2,914 crore, the lowest level in the last 20 months, due to sluggish stock markets and appreciation in gold prices.
However, equity MFs saw an average monthly inflow of Rs7,550 crore in 2015. The industry's equity AUM dropped from Rs3.64 lakh crore in December to Rs3.45 lakh crore in January this year, according to Association of Mutual Funds in India (AMFI). This was the lowest since August, when the assets base of equity mutual funds stood at Rs3.43 lakh crore.