Nov 15, 2011, 02.51 PM | Source: Moneycontrol.com
CRISIL Research has come out with its view on monthly mutual fund inflows / outflow numbers released by AMFI for month ended October 2011.
Mutual fund industry witnesses first net inflows since July
Indian mutual fund industry witnessed its first net inflows since July when month-end assets under management (AUM) rose over 8% in October primarily due to net inflows into the short maturity mutual fund category (ultra short term debt and liquid funds). The industry witnessed net inflows of Rs.413 billion in October vis-a-vis net outflows of Rs.542 billion in September and Rs.146 billion in August. Quarter end outflows (September) and reversal in the subsequent month (October) are common to the industry wherein corporates re-invest their withdrawals.
Equity funds see net inflows for the third consecutive month
Equity funds saw net inflows for the third consecutive month but the same were sharply lower at Rs.2.10 billion compared with Rs 14 billion in September. The rise in AUM of equity funds was largely on account of mark to market gains following the rise in the S&P CNX Nifty by 8% in October.
Gold ETFs continue to grow while gilt funds continue to retreat
Gold exchange traded funds (ETFs) continued to see inflows for the seventeenth consecutive month (Rs.4.55 billion) compared to Rs 10 billion in September. On the other hand, gilt funds witnessed net outflows (Rs.2.52 billion in October) for the eleventh month in a row aggregating Rs 18 billion. Gilts yields have risen due to monetary tightening by the central bank (gilt prices fall as yields rise) on account of higher inflation. This has impacted the performance of gilt funds.
FMPs top new fund offers
Among the 51 new schemes launched, 46 were fixed maturity plans or FMPs which collected Rs.57 billion in October. FMPs also witnessed similar outflows on account of term end redemptions. The industry collected Rs 70 billion across all new fund offers in October.
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