Investments in mutual funds slumped substantially in August, with the industry witnessing a net fund inflow of over Rs 32,600 crore, a 74 per cent decline on a month-on-month basis.

At the end of August, investors poured in funds worth Rs 32,673 crore, down from Rs 1,23,679 crore at the end of July, a monthly report by Association of Mutual Funds of India said. Despite the slump in the volume of net investment, investors continued to prefer mutual funds as an investment option as inflows continued for the second straight month.