The data released by AMFI clearly shows that there has been a weakness in the mutual fund flows in the month of September. The mutual fund (MF) industry saw tepid growth in the September quarter, with a marginal improvement of 0.7 per cent in average assets under management (AAUM) over the previous quarter. Smaller fund houses continued to see a significant reduction in assets. Consider the following cases. Indiabulls MF saw average asset size shrink 50 per cent while PGIM India MF and IDBI MF saw around 20 per cent reduction. In case of Indiabulls and PGIM it was due to the troubles in the Indiabulls HFL and DHFL respectively. IDBI was for obvious reasons.

In absolute terms, Nippon India MF (formerly Reliance Nippon AMC) saw its asset size fall by Rs.20,000 crore as most of the Reliance ADAG investments were withdrawn. Other MFs, which saw most contraction in absolute terms was L&T MF (a fall of Rs 4,283 crore), Tata MF (Rs 3,995 crore), UTI MF (Rs 3,637 crore). There was a clear move towards larger names. Also, the outflows can be explained to tax payments and the half year ending payments, so the number could be misleading.