Top mutual funds’ asset base declines by Rs 8,900 crore in February
The AUM of country’s top 10 mutual funds declined by Rs 8,900 crore in February, mainly on account of lower inflows from retail and high networth individuals (HNIs).
The assets under management (AUM) of the fund houses slumped to Rs 18,68,404 crore in February, as against Rs 18,77,303 crore in January, as per the data of the Association of Mutual Funds in India.
“Historically over the last decade, the post Budget month has been weak and this February was not an exception,” Reliance Mutual Fund CEO Sundeep Sikka said.
“India’s long term growth story remains intact and corporate earnings are beginning to bounce back. In that context, the current correction gives a great opportunity for retail investors to get back or increase allocation in MFs and direct equity at lower valuations. The investor base in India is expanding and 2018-19 will not be any different,” he added.
Of the top 10 fund houses, six witnessed a drop in their asset base, while the remaining four — Kotak Mahindra MF, Axis MF, Reliance MF and ICICI Prudential MF saw rise in their AUMs. Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. These funds are invested in stocks, bonds, and money market instruments, among others.
