MF assets touch 18-month high
The rise was due to inflows of R46,700 crore, most of it to income and liquid funds. The numbers were part of the monthly data released by the Association of Mutual Funds in India (Amfi).
Most inflows seen in income funds: Income funds reported the highest inflows among mutual fund categories at R293 billion. The category assets increased around 9% (R31,100 crore) to R3.84 lakh crore in October. With the Reserve Bank of India (RBI) maintaining a status quo on interest rates in the latest monetary policy, investors continued to prefer dynamic bond funds and short-term and ultra short-term debt funds within the category. These funds benefit when there is interest rate uncertainty.
Equity funds register outflows for the fifth month in a row: Equity funds registered outflows for the fifth consecutive month in October due to profit booking by investors. In the latest month, the category saw outflows of R20 billion (R3,600 crore in September and over R9,000 crore in the past five months) with assets falling to R1.84 lakh crore. The benchmark S&P CNX Nifty has risen over 21% on a year-to-day basis and by over 7% over the past three months ended October 31, 2012. However, the index fell 1.5% in the latest month due to weak
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