Crisil views on performance of Mutual fund industry

Crisil is out with its latest report on the performance of Mutual Fund industry amid volatile market. The main highlights of the report are:

1. The Indian mutual fund industry's month-end assets under management (AUM) rose by around 16% or Rs 92,937 cr to Rs 6.80 lakh cr 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 past one year.

2. Money market funds recorded highest inflows in the last one year of Rs 75,752 cr, which constitutes 82% of the total monthly inflows, taking the total assets for the category to Rs 1.57 lakh cr at the end of the month.

3. Income funds (including ultra short-term debt funds), which saw outflows for the past five consecutive months reported inflows of Rs 17,874 cr (highest in the last one year) in April; the category's month-end AUM rose by 6.5% or Rs 18,894 cr to Rs 3.09 lakh cr in the month.

4. Assets managed under gold exchange traded funds (ETFs) rose by 3% or Rs 300 cr to end with assets of Rs 10,218 cr in the month primarily due to mark-to-market gains.

5. Assets of equity funds fell by Rs 2,456 cr or 1.4% to Rs 1.80 lakh cr in April on outflows of over Rs 615 cr as well as mark-to-market losses in the underlying equity market.

6. Mutual funds net sold equities worth Rs 525 cr in April compared with net selling of Rs 1,548 cr in March and were net buyers in debt to the tune of Rs 37,280 cr in April compared to net buying of Rs 1,00,573 cr in the previous month.

7. Among major regulatory developments, SEBI directed fund houses to take action against distributors who circumvent norms to get the same day's NAV in debt schemes by splitting their purchases to ensure the Rs 1 cr limit is not crossed.

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