Mutual funds' AUM dips 6% in December at Rs 21 trn

Yield on govt's 10-year bond, which was hovering around 6.48% in early September was on a gradual rise

India's mutual fund industry witnessed one of its worst declines in assets under management (AUM) in recent months during December as a sustained rally in bond yields made debt investors nervous. The industry's combined AUM declined over six per cent to Rs 21.37 trillion against Rs 22.79 trillion in November. Such a steep fall pushed the industry two months behind to AUM levels last seen in October 2017.

The yield on Indian government's 10-year bond, which was hovering around 6.48 per cent in early September was on a gradual rise. But, the uptrend gained pace with the yield peaking at