Tuesday’s stock market collapse damages Rs 1.4 trillion in MF AUM

Tuesday’s election day stock market sell-off led to a 5.5 percent decline in assets under management of active equity funds. Assets under management, which stood at Rs 25.3 trillion on Monday, fell by Rs 1.4 trillion to Rs 23.9 trillion on Tuesday, data from the Association of Mutual Funds in India (Amfi) showed.

AUMs have partially recovered, with benchmark indices up 4 percent over the past two trading sessions. Small cap funds recorded one of the lowest declines in assets under management among active MF schemes at 5.2 per cent, despite the small cap indices showing the sharpest correction compared to other market capitalization-based indices. The Nifty Smallcap 100 fell 8.2 percent on Monday, compared to a 7.9 percent decline in the Nifty Midcap 100 and a 5.9 percent decline in the Nifty 50.