The Indian mutual fund industrys assets under management (AUM) declined by more than 6% at the end of July compared to last month as RBIs liquidity tightening measures led to a huge outflows from the liquid funds category. For the industry, the total AUM fell below the R8 lakh-crore mark for the first time since March at R7.61 lakh crore.
According to a Crisil research on Amfis monthly numbers, the total outflow for the industry in July was R50,600 crore. Liquid funds which track money markets lost R45,300 crore as they ended the month with an AUM of R1.29 lakh crore. The categorys AUM declined 21% on a monthly basis. Meanwhile, the month saw renewed interest in fixed maturity plans (FMPs) on account of rise in bond yields. FMPs are closed-ended funds which lock-in high yields over the time period of the scheme. Out of the 40 new fund offers (NFOs), 37 belonged to this category.