We have seen a continuous loss of Equity Assets from Mutual Funds since the year 2008. Equity Assets peaked out at a level of around Rs 2,50,000 Crores in Indian Mutual Funds in January 2008. At that time they comprised almost 45% of the total assets of MF’s. The spiral of outflows that started that time has continued till date and the outflows have continued at the rate of Rs 2000-3000 Crores per month on an average. Today despite the markets being at all time highs we are still seeing the outflows continue. The total Equity Assets today stand at just around Rs 1, 50,000 Crores which are just 17% of the total AUM. In the same time frame the bank deposits have gone up from Rs 30 lakh crores to Rs 70 lakh crores, Real Estate is estimated to have attracted an additional Rs 20 Lakh Crores and gold has seen flows of over Rs 8 lakh crores. The non equity assets of the Mutual Funds have also gone up from around Rs 3 lakh crores to 7.3 lakh crores today.
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