MF assets close at record highs, near the Rs. 12 trillion mark

India Infoline News Service | Mumbai | February 07, 2015 15:03 IST

Inflows to the tune of Rs 858 bn helped liquid funds become the biggest contributor to the industry AUM in the latest month

The Indian mutual fund industry’s assets under management (AUM) rose 12% or by Rs 1.30 trillion in January 2015 to Rs 11.81 trillion, according to the monthly numbers released by the Association of Mutual Funds in India (AMFI).

The latest asset tally is the highest on record driven by inflows and mark-to-market (MTM) gains in liquid, income and equity fund categories.

Cyclical inflows in liquid funds provide biggest boost to overall AUM
Inflows to the tune of Rs 858 bn helped liquid funds become the biggest contributor to the industry AUM in the latest month. Cyclical inflows and MTM gains boosted liquid funds’ AUM by Rs 869 bn to Rs 2.65 trillion. Historical trend has shown that quarter-end outflows in the category are reversed at the start of the quarter as banks and corporates re-invest the surplus funds they had withdrawn to meet quarter-ended reserve requirements and payment towards advance tax outflows, respectively.
 
Income funds see robust inflows, AUM closes at record high
Income funds logged net inflows of Rs 122 bn on falling yield (rise in prices) aided by the surprise interest rate cut by the Reserve Bank of India (RBI); the central bank cut its key benchmark rate – repo – by 25 bps to 7.75% on January 15, 2015. It also stated that once the monetary policy stance shifts, subsequent policy actions will be consistent with this stance subject to supportive data of falling inflation and fiscal consolidation. Inflows coupled with MTM gains helped the category assets gain 3.60% or Rs 181 bn to a record high AUM of Rs 5.20 trillion.
 
Gilt funds see net inflows for fifth consecutive month, assets at record high
Gilt funds too benefitted from falling interest rates; the yield of the 10-year benchmark 8.40% 2024 bond fell to 7.69% on January 30, 2015 compared with 7.86% on December 31, 2014.The category attracted net inflows of Rs 18.13 bn - the fifth consecutive month of net inflows for the category. Inflows clubbed with MTM gains resulted in 23% or Rs 20.5 bn rise in assets to Rs 111 bn, the highest asset tally for the category on record.
 
Equity funds post net inflows for the ninth consecutive month, asset tally at record high
Equity funds continued to attract net inflows (Rs 63.24 bn) for the ninth consecutive month in January on the backdrop of positive sentiment for the asset class. Inflows and MTM gains led the category up 6.72% or by Rs 215 bn to Rs 3.41 trillion in the latest month, the highest asset tally for the category on record. The underlying asset class, represented by the benchmark CNX Nifty Index, gained 6.35% in the month on positive domestic and international cues.
 
Balanced funds also benefit from positive equity trend, inflows continue
Balanced funds, which invest a major portion of their AUM in equity, also benefited from the ongoing uptrend in the equity market as the category fetched inflows for the eight straight month. Net inflows of Rs 8.35 bn coupled with MTM gains boosted the category’s assets by Rs 13.02 bn to Rs 258 bn. The category’s standard benchmark, represented by CRISIL Balanced Fund Index, rose 4.74% in the month.
 
Gold ETFs’ AUM ends positive amidst net outflows
Despite gold ETFs continuing to witness redemption for the 20th straight month, the category’s AUM ended up 0.79% or Rs 0.57 bn to Rs 72.45 bn due to MTM gains. The price of gold (represented by the CRISIL Gold Index) rose 2.35% in January.
 
Fund of funds investing overseas post net outflows for the eight consecutive month
Assets of fund of funds investing overseas fell by 6.3% or Rs 1.68 bn to Rs 25 bn due to net outflows of Rs 1.02 bn (eight consecutive monthly outflow).

Month-on-month mutual fund flows and AUM distribution

 

Mutual Fund Category

Net Inflow/ Outflow (Rs bn)

Month-end AUM (Rs bn)

Jan-15

Dec-14

2015 Total

Jan-15

Dec-14

Difference

Income Funds

121.63

-16.32

121.63

5202.34

5021.54

180.80

Infrastructure Debt Funds

-

-

-

11.60

11.47

0.13

Equity Funds*

63.24

66.51

63.24

3409.36

3194.78

214.58

Balanced Funds

8.35

17.89

8.35

257.92

244.90

13.02

Liquid / Money Market Funds

858.48

-507.86

858.48

2653.58

1784.91

868.67

Gilt Funds

18.13

20.90

18.13

110.75

90.25

20.50

Gold ETF Funds

-1.31

-1.11

-1.31

72.45

71.88

0.57

Other ETFs

1.28

7.73

1.28

70.56

67.02

3.54

Fund of Funds Investing Overseas

-1.02

-1.62

-1.02

25.00

26.68

-1.68

Total

1068.78

-413.88

1068.78

11813.56

10513.43

1300.13

Source - AMFI

 
 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.