Equity mutual fund schemes witnessed net inflows of Rs 2,000 crore in August, which is second highest monthly inflows in 2011, this despite choppy markets. However, assets under management (AUM) of equity funds fell by 7% month-on-month to Rs 1.78 lakh crore in August 2011, the lowest since July 2009.
“This followed the sharp decline in equity markets; the benchmark S&P CNX Nifty fell by 9% during the month on fears of a slowdown in the global and domestic economies coupled with the impact of sovereign debt issues in the US and Europe”, said Jiju Vidyadharan, Head-Funds and Fixed Income, CRISIL Research.
The overall mutual fund industry’s AUM fell by over 4% (Rs 31,400 crore) to Rs 6.97 lakh crore on in August 2011 due to net outflows of Rs 14,600 crore from income funds and liquid funds as well as mark to market losses in equity funds, said a CRISIL research report.