Gold ETFs witness record monthly outflows in June: Crisil
According to the AMFI, assets under Gold ETFs fell by 2.2% over the month to Rs 101 billion in June. The reason for outflow is mainly attributed to profit booking after the price of the metal rose sharply in the past one year due to global risk aversion and domestic buying.
Gold exchange traded funds (ETFs) witnessed monthly outflows of Rs 2.3 billion in June 2012, the highest ever in the category. According to the Association of Mutual Funds in India (AMFI), assets under Gold ETFs fell by 2.2% over the month to Rs 101 billion in June.
The outflows from this category could be primarily because of profit booking after the price of the underlying metal rose sharply in the past one year due to global risk aversion and domestic buying.
Gold prices represented by the CRISIL Gold Index have risen 34% in the one-year period ended June 29, 2012.
Meanwhile Equity funds assets rose by 5.4% or Rs 92 billion to Rs 1.8 trillion in June compared with fall of 5.1% or Rs 92 billion in May. The rise in month-end assets of equity funds was primarily due to mark-to-market gains from the underlying equity markets despite the category witnessing marginal outflows (Rs 3 billion) in the month. The domestic equity market, as represented by the S&P CNX Nifty, rose by 7% in the month led by positive domestic and global cues.
On the debt front, Income funds (including ultra short-term debt funds and fixed maturity plans) saw inflows for the third consecutive month in June. The category logged steady inflows of Rs 15.7 billion in the month, compared with the same amount of inflows seen in the previous month. The inflows were largely on account of fixed maturity plan (FMP) new fund offers (NFOs) where investors are able to lock into higher yields.
FMPs continued to garner the majority of the NFOs in the month. Out of the 61 NFOs in the month, 55 were FMPs and garnered Rs 40 billion. The month-end assets of income funds rose by 1.06% or Rs 33 billion to Rs 3.17 trillion at the end of June 2012.
On and all, the mutual fund industry's month-end assets under management (AUM) fell by 1.5% (Rs 105 billion) to Rs 6.89 trillion in June 2012 (Table 1) primarily due to outflows in money market funds which witnessed cyclical quarter-end outflows due to withdrawals by corporates. Money market funds witnessed outflows of Rs 251 billion mainly because of corporates withdrawing their short-term mutual fund investments to meet advance tax requirements (Rs 250-300 billion).
Table 1 - Month-on-Month Mutual Fund Flows and AUM distribution