The assets under management (AUM) of mutual funds (MFs) declined to ₹21.36 lakh crore in March from ₹22.20 lakh crore in the previous month even as the overall AUM registered a rise of 21.7% in the financial year 2017-18, according to the Association of Mutual Funds in India (AMFI).
The month-on-month decline “mostly reflects a quarter-end phenomenon wherein companies tend to redeem investments in liquid funds for advance tax payments,” rating ICRA said on the decline. Data shows that in the last 21 quarter-end months, AUM had declined in 20 instances, according to a statement from the rating agency.