MFs' assets up 5.3% in Oct-Dec, highest since September 2010

Last Updated: Mon, Jan 07, 2013 19:43 hrs

Average assets under management (AUM) of India’s mutual fund industry have risen to its highest since September 2010. Thanks to the inflows into income and gilt funds, the sector posted a gain of 5.3 per cent in its AUM in the October-December quarter at Rs 7.87 lakh crore.

Ever since industry body the Association of Mutual Funds in India (Amfi) started declaring AUM data on a quarterly basis in September 2010, fund industry at large has been doing good in terms of asset growth. Moreover, assets gain in the December quarter was the third consecutive quarterly rise in mutual fund assets.

According to a report by Crisil, long-term debt and gilt funds reported a sharp rise in their assets in the December quarter due to inflows led by expectations that the Reserve Bank of India (RBI) would lower its key interest rates in the near future. The RBI, in its policy review of December 2012, had mentioned that the recent ebbing in inflation rates reinforced its guidance for policy easing in January-March 2013.

Category-wise average AUM (Rs cr)
Mutual fund categories Oct-Dec
Change Change
Equity 210,700 202,300 8,400 4
Money market 171,700 178,000 -6,300 -4
Ultra short term 112,800 115,000 -2,200 -2
Short term debt 59,100 41,300 17,800 43
Long term debt 63,200 390,00 24,200 62
Gilt 4,800 3,300 1,500 45
Fixed maturity plans 109,300 119,000 -9,700 -8
Other debt-oriented 39,100 35,200 3,900 11
Gold ETFs 11,700 10,600 1,100 10
Others 4,100 3,600 500 13
Total 786,500 747,300 39,200 5
Source - CRISIL Mutual Fund Database

Equity assets, the segment which has been avoided by investors for long, witnessed a growth of four per cent to Rs 2.11 lakh crore in the quarter. Despite continuous outflows, equity assets managed to grow on the back of post-September upward move in the stock markets.

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