Mutual funds closed the year with an 11.41 percent rise in their total assets under management at Rs 23.80 lakh crore in the year to March, from Rs 21.36 lakh crore in the previous year, according to the industry data released Wednesday. On a monthly basis, AUM grew 2.73 percent from Rs 23.16 lakh crore in February. "Increase in net inflows in equity and income categories as against net outflows in the previous month led to the growth in AUM on a yearly basis," according to the Association of Mutual Fund Industry (AMFI) data collated by rating agency Icra.

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The industry saw net outflows of Rs 22,357 crore in March as against net outflows of Rs 20,083 crore in February, the agency said. On a monthly basis, net outflows in the liquid/money market category came more than doubled to Rs 51,343 crore from Rs 24,509 crore in February. "The rise in net outflows reflects redemptions at fiscal year-end as corporates usually tend to redeem their investments to meet the advance tax payment deadline," the agency said.

After witnessing net outflows of Rs 4,214 crore in February, income category witnessed net inflows of Rs 13,856 crore in March 2019 amid the rate cut scenario, according to the Amfi data.

Inflows in equity funds (including equity-linked savings schemes) grew more than 120 percent month-on-month in March to Rs 11,756 crore.

The report said the gains were driven likely by larger flows into tax saving schemes at the end of FY19.

Net inflows in the other ETF category came in at Rs 10,540 crore in March 2019 as against net inflows of Rs 5,234 crore in February, the report showed. However, net outflows in the balanced category came in at Rs 3,181 crore as against net outflows of Rs 1,077 crore in February.

Quarterly average assets under management in the March quarter stood at Rs 24.47 lakh crore, up from Rs 23.62 lakh crore in the December quarter.

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AUM under equity (including ELSS), balanced, and other ETFs came in at Rs 11.55 lakh crore in March up 9.05 percent.