But the industry is not worried saying this seems to be quarter-end trend as more investors are going in for redemptions around this time.
According to Amfi data collated by domestic rating agency Icra, during the past 18 quarters, the third month of each quarter saw decline in AUMs in 16 quarter. In June this year, high redemptions were seen in income and liquid fund categories.
Consequently, the money market segment witnessed net outflow of Rs 12,739 crore in the month, while balanced, equity and equity linked savings schemes (ELSS) saw strong inflows of Rs 7,458 crore, Rs 7,453 crore and Rs 711 crore respectively.
According to the report, retail participation has remained strong as inflows through systematic investment plans (SIPs) have been at a robust Rs 43,921 crore in fiscal 2017 and Rs 4,584 crore in May.
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Since April 2016, net inflows into the balanced category was at Rs 58,867 crore as investors seem to prefer it for higher risk adjusted returns.
Total folio count as of end-June stood at 5.82 crore, 1.8 per cent higher than in May. Growth was primarily on the back of 7.84 lakh new folios added to the equity category (including ELSS) and 1.91 lakh new folios to the balanced category.
Since April 2016, 58.3 crore new folios were added to the equity and ELSS categories, the study said.
Gross commission, as per the report, has almost doubled in last three years for top distributors. As per Amfi data, gross commission earned by MF distributors has almost doubled in the last three years from Rs 2,603 crore in fiscal 2014 to Rs 4,987 crore in fiscal 2017.
Top 10 distributors were given Rs 2,379 crore commission by AMCs in fiscal 2017, representing 47.72 per cent of the total fees paid to distributors.
The industry's assets are almost equally distributed between retail/HNI investors and institutional investors at Rs 8.7 trillion and Rs 8.8 trillion respectively, as of March.
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