As the fiscal year draws to a close, corporates based in Ahmedabad withdrew funds from debt and liquid mutual funds, causing a notable shift in the city’s standing in terms of mutual fund assets under management (AUM). Previously a prominent player, Ahmedabad has now slipped to the seventh position nationally. According to data from the Association of Mutual Funds in India (AMFI), Ahmedabad’s MF assets amounted to Rs 1.45 lakh crore in the December quarter of FY 2023-24.
The city accounts for 2.7% of the total AUM in India. According to industry sources, the withdrawal of corporate money from liquid and money market funds, possibly in anticipation of clearing account books for fiscal year closing, contributed to the decline in AUM.
“It’s a common practice for corporates to temporarily park funds in liquid and debt funds and withdraw them as needed to settle pending taxes and dues before redepositing them once the fiscal year closing dues are settled. While retail investors typically focus on Indian equity markets, corporates and institutions often utilize liquid and debt funds for short-term fund management,” said a mutual fund consultant.
Apart from Ahmedabad, Vadodara also featured among the top 10 cities with the highest AUM in India, with an AUM of Rs 45,701 crore during the quarter, according to AMFI data. Six cities from Gujarat, including Surat, Rajkot, Jamnagar, and Gandhinagar, were among the top 30 cities in India with the highest AUM. These six cities collectively contributed Rs 2.59 lakh crore to the state’s AUM, accounting for 74.15% of Gujarat’s total AUM.
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