The domestic asset management industry witnessed a value erosion of 2% in its monthly assets due to the volatile conditions in the equity markets, according to credit ratings agency Crisil.
As a result, the month-end asset value of the industry declined to Rs 6.82 lakh crore in November, despite an inflow of around Rs 38,000 crore into the segment during the month.
"The fall in assets worth Rs 13,800 crore was primarily due to mark-to-market losses in the equity category, which declined by Rs 15,000 crore in the month," Crisil said in a report today.
Equity funds saw a sharper decline of 8% or Rs 15,000 crore in the asset value to Rs 1.7 lakh crore due to a steep fall in the underlying equity markets in the month, it noted.
During November, the NSE benchmark index Nifty fell around 9% due to weak global cues and the resultant downbeat domestic sentiment.
The category also witnessed marginal outflows of Rs 5 crore in the month for first time in four months, Crisil said.
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Significantly, despite the rise in prices of the yellow metal, gold ETFs saw outflows for the first time in 18 months, the report said.
The category registered outflows of Rs 22 crore in the month compared to inflows of Rs 455 crore in October.
The 50 fixed income plans launched during the month amassed Rs 8,900 crore, while other debt and equity schemes garnered just Rs 100 crore during the period under review.