Assets of income funds rise 3.5% to Rs. 4.48 trillion in Feb

India Infoline News Service | Mumbai |

The inflows were primarily into FMPs as investors continued to invest in the closed-end funds, lured by higher interest rates offered currently

Income funds (long-term, short-term and ultra short-term debt funds; and fixed maturity plans or FMPs) logged inflows of Rs 129.6 bn in February – the highest since May 2013, according to the monthly numbers released by the Association of Mutual Funds in India (AMFI).
Inflows, coupled with mark-to-market gains, helped income funds’ AUM rise 3.5%, or by Rs 152 bn, to Rs 4.48 trillion in February. The inflows were primarily into FMPs as investors continued to invest in the closed-end funds, lured by higher interest rates offered currently. One-year commercial papers and certificates of deposit traded at 10.12% and 9.76%, respectively, on February 28, compared with 10% and 9.64% on January 31.
The financial year-end typically sees a spurt in FMP launches as investors are drawn to the indexation and double indexation benefits these offer, depending on the tenure. In February, fund houses garnered Rs 213 bn by launching 128 FMPs compared with Rs 113 bn garnered in the previous month through 75 new launches.
The category as represented by CRISIL – AMFI Income Fund Performance Index, CRISIL – AMFI Short Term Debt Fund Performance Index and CRISIL – AMFI Ultra Short Fund Performance Index gave 0.12%, 0.55% and 0.63% returns respectively in the month of February.
 

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.