Indian MF industry's AUM fell 2.2%

 Weighed by an outflow in liquid fund assets, Indian mutual fund industry’s assets under management (AUM) fell 2.2 per cent, or by Rs 29,034 crore, in November to Rs 12.95 lakh crore, according to latest numbers declared by the Association of Mutual Funds in India (AMFI).

During the month, liquid fund assets fell 14.5 per cent, or by Rs 40169 crore, to Rs 2.36 lakh crore due to outflows of Rs 42,059 crore, CRISIL said.

Volatility in equity market failed to dampen investor sentiment as equity mutual funds saw inflows for the 19th consecutive month. Led by inflows of Rs 6,379 crore, the category's AUM rose 1.5 per cent, or by Rs 5,906 crore, to a new high of Rs 4.03 lakh crore. However, mark to market (MTM) losses ate up part of the gains as the underlying assets, as represented by Nifty 50 – fell 1.62 per cent in November, CRISIL said.

Gold ETFs continued to suffer from persistent outflows as downbeat performance by underlying assets weighed on sentiment. The category's AUM fell 6.4 per cent, or Rs 396 crore, to Rs 5,830 crore due to MTM losses and outflows of Rs 0.40 billion. The underlying asset represented CRISIL Gold Index fell 5.7 per cent in the month, CRISIL said.

Investors shied away from gilt funds with November seeing outflows of Rs 0.80 billion after four consecutive monthly inflows. The category's AUM declined 1.1 per cent, or by Rs 199 crore, due to outflows and MTM losses. Yield on the 10 year benchmark bond rose to 7.79 per cent on November 30 compared with 7.64 per cent on October 30 (bond prices are inversely related to yields), CRISIL said.