The mutual fund industry saw its asset base slip 2 per cent to Rs 26.54 lakh crore at the end of December, primarily on account of outflow from debt-oriented schemes, including liquid funds.

The 44-player industry logged an all-time high asset under management (AUM) of Rs 27.04 lakh crore at November-end compared with Rs 26.54 lakh crore at the end of December, a decline of 2 per cent, according to data from the Association of Mutual Funds in India.

Mutual fund houses witnessed an overall outflow of Rs 61,810 crore last month compared with an inflow of Rs 54,419 crore in November.

Fund managers attributed the drop in the asset base to an outflow of Rs 78,940 crore from debt-oriented schemes.

Among debt-oriented schemes, liquid funds, with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon, witnessed an outflow of over Rs 71,000 crore, the highest among the fixed-income segment last month.

Besides, overnight funds, which invest in securities with a maturity of one day, saw outflows of over Rs 8,800 crore. However, banking and PSU funds, which have a high allocation to the highest rated bonds, received funds worth Rs 4,770 crore.

Robust equity inflows

Equity-oriented funds continued to attract investments, tracking the surge in domestic markets in December.

Inflows into equity mutual funds rose to Rs 4,499 crore from Rs 1,311.64 crore in the preceding month. In November 2019, profit booking had seen the net inflows falling to a 41-month low.

Collection through systematic investment plan (SIP) has surged to over Rs 8,518 crore in December from Rs 8,273 crore in the preceding month. The asset base of SIPs rose to an all-time high of Rs 3.17 lakh crore from Rs 3.12 lakh crore reflecting positive sentiment in equities.