Assets under management (AUM) of the domestic mutual fund industry have witnessed a growth of nearly 76 per cent in 2003-04 — from Rs 79,464 crore to Rs 1,39,616 crore, according to the latest figures released by the Association of Mutual Funds in India (Amfi).
When compared to the AUM figures of March 31, 2003, it is seen that the growth in AUM was mainly on the back of equity-dedicated schemes that saw a growth of close to 106 per cent from Rs 14,256 crore to Rs 29,326 crore.
Rajat Jain, chief investment officer, Principal Mutual Fund, said, “We can attribute the growth of the total corpus of mutual funds to the inflows we witnessed in equity-dedicated schemes in the last fiscal. The interesting phenomenon was that while the markets started booming in April and May 2003, fund houses saw inflows in equity schemes from June itself.”
He said this is an indication that the Indian investor prefers the MF route rather than taking the plunge himself. Further, even conservative investors of debt preferred to taste a slice of equity through schemes like monthly income plans (MIPs), leading to the success of such hybrid funds in the last fiscal, he added.
While mutual fund investors went gung-ho on equity-dedicated schemes, their debt counterparts were not neglected altogether. Debt-dedicated schemes posted a growth of 69 per cent in the fiscal from Rs 65,208 crore to Rs 1,10,254 crore.
Figures posted on the Amfi website also show that in the equity category, the AUM of growth schemes of AMCs have added on a hefty 138 per cent to their corpus during the fiscal to rise to Rs 23,613 crore from Rs 9,887 crore.
Among other equity-dedicated schemes, the AUM of balanced funds grew to Rs 4,080 crore from Rs 3,141 crore, a rise of nearly 30 per cent. The ELSS tax saving category added 36 per cent to its AUM from Rs 1,228 crore to Rs 1,669 crore.
In the debt-dedicated category of schemes, the AUM of income schemes rose from Rs 47,564 crore to Rs 62,524 crore, a growth of 31 per cent. The gilt category of schemes added a little over 54 per cent to its corpus, rising from Rs 3,910 crore to Rs 6,026 crore. The liquid and money market dedicated schemes, however, added a whooping 204 per cent to their corpus from Rs 13,734 crore to Rs 41,704 crore.