Political uncertainty takes toll on equity MFs
New Delhi: Amid market volatility and political uncertainty, inflow to equity mutual funds plunged by 60 per cent to Rs 6,158 crore in January this year against Rs 15,390 crore seen in such schemes in the same month last year.
This also marked the third consecutive monthly decline in inflows in such schemes, according to the data available with Association of Mutual Funds in India (Amfi). The drop in inflow has pulled down the asset base of equity mutual funds (MFs) to Rs 7.73 lakh crore at the end of January this year from Rs 7.87 lakh crore in the year-earlier.
Market players attributed the decline in inflow to volatile market and political uncertainty, wherein the broader indices remained under pressure. Overall, the mutual fund industry witnessed a net inflow of Rs 65,439 crore in January as against an inflow of Rs 1.06 lakh crore in the same month last year. The assets under management (AUM) for the industry stood at Rs 23.4 lakh crore in January this year compared to Rs 22.41 lakh crore at the end of January 2018.