The assets managed by China’s private funds grew last month as those of its mutual funds shrank, with investors diversifying their portfolios amid a sell-off of semiconductor shares.The net assets under management (AUM) of domestic mutual funds shrank by 560 billion yuan (US$83.3 billion), or 1.4 per cent month on month, in July to 39.11 trillion yuan, according to data released by the Asset Management Association of China on Wednesday.The decrease ended a four-month run of mutual fund growth, with net AUM hitting a record high 39.67 trillion yuan by the end of June, data from the association, which is backed by the China Securities Regulatory Commission, showed.By contrast, China’s domestic private funds managed a record 25.73 trillion yuan of assets by the end of July, up 2.07 trillion yuan, or 8.7 per cent, in a month, according to the association’s data.The July increase marked the 10th consecutive month of expansion of private offered funds in China.Mainland China’s markets and their global peers witnessed a slump in semiconductor shares in July amid growing concerns over the monetisation of artificial intelligence. Shanghai’s chip-heavy Star 50 Index plunged nearly 26 per cent in July, deeper than the 8 per cent fall in the broader CSI 300 Index, which tracks leading companies on the main boards in Shanghai and Shenzhen.