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.
Disclaimer: This report (Report) has been commissioned by the Company/Investor/Exchange and prepared by CRISIL. The report is based on data publicly available or from sources considered reliable by CRISIL (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. Opinions expressed herein are CRISIL's opinions as on the date of this Report. The Data / Report are subject to change without any prior notice. Nothing in this Report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The Report is not a recommendation to buy / sell or hold any securities of the Company. CRISIL especially states that it has no financial liability, whatsoever, to the subscribers / users of this Report. This Report is for the personal information of the authorized recipient only. This Report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or copied in whole or in part especially outside India, for any purpose.
© CRISIL Limited . All Rights Reserved. Published under permission from CRISIL"