MF assets dip 8% in June on tax payment

MUMBAI: The total assets under management ( AUM) by mutual funds fell 8% during June to Rs 6.7 lakh crore from Rs 7.3 lakh crore as of May end, thanks mainly to corporate fund outflow from short term funds because of advance tax payment in mid-June.

It was also the second consecutive month of outflows for the fund industry, with over Rs 1.1 lakh crore going out of the fund houses during this period, data released by the industry trade body AMFI showed.

“The fall was due to outflows witnessed by the industry mainly in the short term debt category—ultra short term debt and liquid funds,” said Tarun Bhatia, director, capital markets, Crisil Research . Outflows from shortterm debt funds during the quarter ending months are common due to withdrawals by corporates and banks for advance tax payment.