The rise in assets in Q3, FY14 was mainly attributed to inflows into liquid funds and fixed maturity plans, besides equity schemes, the rating agency said in a report.
During calender year 2013, the industry's assets grew 11 per cent, or Rs 90,000 crore, as against 15 per cent rise in 2012.
Interestingly, average AUMs under equity MFs rose 5 per cent during the December quarter to Rs 1.96 trillion, making it the highest quarterly rise since September 2010 due to mark to market gains.
"The rise in assets was despite net outflows in the category due to profit booking and volatility in the underlying market," the report said.
Money market funds gained the most in last 11 quarters with assets growing 35 per cent to Rs 2.31 trillion due to heavy inflows following a reversal of liquidity tightening measures by the RBI once the exchange rate volatility eased.
Similarly, assets under fixed maturity plans rose 21 per cent to touch Rs 1.32 trillion by the end of the reporting quarter. However, debt and gilt funds were the worst performers due to the interest rate volatility, caused by resurgent inflationary pressures and the recent rupee fall.
"Debt (long & short term) funds' AUM fell by Rs 17,900 crore to Rs 1.81 trillion, while gilt funds saw an erosion of Rs 700 crore in their AUMs to Rs 7,700 crore," Crisil said.
During Q3, FY14, gold ETF's corpus shrank 11 per cent to Rs 9,500 crore due to outflows coupled with MTM losses.
The report noted that share of direct plans rose to 30 per cent of the industry's AUM as against 26 per cent posted in the previous quarter (July-September 2013).
As many as 32 out of the 44 fund houses posted a rise in AUM in the December quarter. ICICI Prudential MF registered the highest growth in AUM in absolute terms, up by Rs 12,000 crore to Rs 97, 200 crore, followed by Reliance MF, whose assets rose by Rs 9,200 crore to cross the Rs 1 trillion.
HDFC MF retained its top position across fund houses in the reporting quarter with assets of Rs 1.09 trillion, followed by Reliance MF and ICICI Prudential.