AUM up by 16% in Apr on inflows into liquid funds: CRISIL
The AUM of mutual fund industry's rises by nearly 16% or Rs 929 billion to Rs 6.8 trillion in April 2012 primarily on the back of inflows returning to money market funds post the outflows seen in March.
The mutual fund industry's month-end assets under management (AUM) surged by nearly 16% or Rs 929 billion to Rs 6.8 trillion in April 2012 primarily on the back of inflows returning to money market funds post the outflows seen in March. The month on month percentage gain in assets was the highest in the last one year.
Liquid funds witnessed highest inflows in the last one yearLiquid Funds saw inflows of Rs 757 billion, which constitutes 82% of the total inflows, in the month. Historical trend shows that quarter-end outflows in the category are reversed in the subsequent month (March witnessed outflows while April saw inflows) as corporates re-invest their surplus funds that were withdrawn to pay advance tax. Liquid funds thus saw assets rise to Rs.1.6 trillion in April as compared with Rs 803.5 billion in March. Income funds saw inflows for the first time in last six months Income funds (including ultra short-term debt funds), which saw outflows for the last five consecutive months witnessed inflows of Rs 179 billion (highest in the last one year) in the April. Income fund’s AUM rose by 6.5% or 189 billion to Rs 3.09 trillion in the month.Gold ETFs assets crossed Rs 1 trillion mark Assets managed under Gold Exchange Traded Funds (ETFs) surpassed the Rs 1 trillion mark in the month. The category’s AUM rose by over 3% or Rs 3 billion to Rs 1.02 trillion primarily due to mark to market gains. Gold prices represented by the CRISIL Gold Index rose 1% in the month due to high demand for yellow metal amid ongoing marriage season and Akshya Tritya festival during the month. Equity funds’ assets fell on outflows and MTM lossesEquity funds' AUM fell by 1.4% or Rs 25 billion to Rs 1.8 trillion on the backdrop of outflows of over Rs 6 billion as well as due to market to market losses. The equity market represented by the benchmark S&P CNX Nifty fell nearly 1% in April, dragged down by weak global and domestic cues. Table 1 - Month-on-Month Mutual Fund Flows and AUM distribution
Source - AMFIFMPs continue to garner major share in NFOsFixed maturity plans (FMPs) continued to garner majority of the new fund offers (NFOs) in the month. 33 FMPs were launched in the month, garnering Rs 44 billion compared with one other NFO launched, which garnered around Rs 0.4 billion. Content Partner
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