Equity AUM of domestic mutual funds (MF) declined 6.6% MoM to INR8t in September, bucking the trend of the previous two months (increased by 5.4% in July and 3.6% in August). The fall in equity AUM can be ascribed to market correction in September (Nifty down 6.4%).
We know a lot about runs on banks. What about runs on mutual funds? At first blush, the simple technology of a mutual fund -- NAV based valuation, full mark-to-market, liquid assets -- seems run-proof.
We all are quite familiar about mutual fund expense ratio and we rightly desire that it reduces as much as possible. Recent circular of SEBI have furthered lowered the cap on mutual fund charges in a regular plan.
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this site are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither IndiaNotes nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.