The Assets Under Management (AUM) of the Indian mutual funds industry declined 0.4 per cent to Rs 18.96 lakh crore in June 2017 from Rs 19.04 lakh crore in May 2017 as investors pulled out nearly Rs 16,592 crore across categories, showed data available with Association of Mutual Funds in India (AMFI).
An ICRA report said that it seems to be a quarter-end trend as more investors go in for redemptions around this time. Data shows that in the last 18 quarter-end months, AUM has declined on 16 instances. In June 2017, high redemptions were seen in income and liquid fund categories. As per the ICRA report, the month saw investors prefer equity, ELSS, and balanced funds over the money market category because of low yields on the latter.
