AUM saw a surge by over 8% led by liquid funds inflow
Published on Sat, Feb 11, 2012 at 11:40 | Source : Moneycontrol.com
Updated at Sat, Feb 11, 2012 at 12:01
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AUM saw a surge by over 8% led by liquid funds inflow
The mutual fund industry’s month-end assets rose by over 8% or Rs 477 billion to Rs 6.59 trillion in January 2012 on the back of inflows in money market funds and mark-to-market gains in equity funds.
CRISIL Research has come out with its report on 'AUM up 8% on liquid fund inflows, market gains in equity funds'.
The mutual fund industry's month-end assets rose by over 8% or Rs 477 billion to Rs 6.59 trillion in January 2012 on the back of inflows in money market funds and mark-to-market gains in equity funds.
Expectedly, money market funds witnessed inflows of Rs 264 billion in January. As seen historically, quarter-end outflows in the category are reversed in the subsequent month (December witnessed outflows while January saw inflows) as corporates re-invest their surplus funds that were withdrawn to pay advance tax. As a result, assets under money market funds rose to Rs 1.48 trillion compared with Rs 1.21 trillion in December.
Mark-to-market gains in equity funds was another positive factor for mutual funds in January. The equity market represented by the benchmark S&P CNX Nifty rose around 12% in the month on the back of positive global and domestic cues. This is the first monthly gain for the equity market since October 2011. Assets under equity funds surged by Rs 184 billion or 11% to Rs 1.80 trillion, primarily due to rise in the underlying markets.
To read the detailed analysis by CRISIL, please click here
