Mutual fund AUMs regain Rs 10-tn-mark in July: Crisil

Aug 10 2014, 15:57 IST
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The rise in AUM was primarily due to inflows in equity and liquid funds. The rise in AUM was primarily due to inflows in equity and liquid funds.
SummaryThe rise in AUM was primarily due to inflows in equity and liquid funds.

Mutual fund assets have regained the Rs 10 trillion mark in July, boosted by inflows in money markets and equity funds, according to industry data collated by Crisil.

The AUMs had crossed the Rs 10 trillion mark for the first time in May, when the markets were went up on the Modi wave.

The mutual fund industry's assets under management (AUM) rose 3.26 per cent, or by Rs 317.37 billion, to Rs 10.06 trillion in July from Rs 9.75 trillion in June and slightly short of the record Rs 10.11 trillion in May, according to the monthly numbers released by the Association of Mutual Funds in India (Amfi), said Crisil.

The rise in AUM was primarily due to inflows in equity and liquid funds.

Equity mutual funds' AUM rose to a record high of Rs 2.52 trillion in the month boosted by highest inflows since January 2008 of Rs 108.45 billion.

Total inflows since the start of 2014 amount to Rs 189.34 billion compared to the net outflows of Rs 104.26 billion and Rs 156.20 billion in the preceding two calendar years respectively.

The underlying equity asset class represented by the Nifty gained 1.44 per cent in July and 22.48 per cent since the start of 2014 buoyed by hopes of economic reforms by the Modi government.

Liquid funds' AUMs rose 13.07 per cent, or by Rs 282.25 billion, to Rs 2.44 trillion led by inflows of Rs 255.89 billion plus mark-to-market gains.

Inflows in the category were basically cyclical in nature as corporates and banks/financial institutions ploughed the surplus money back into the funds that was withdrawn in June due to payment towards advance tax, Crisil added.

Income funds logged outflows of Rs 100.80 billion, the highest in the last 19 months, resulting in a monthly fall of 1.53 per cent, or by Rs 73.31 billion, in AUM (Rs 4.72 trillion).

The close-ended income funds (mostly fixed maturity plans) posted outflows of Rs 49.26 billion, the open ended income funds saw outflows of Rs 42.30 billion and the interval funds registered outflows of Rs 9.24 billion in July, the report said.

However, fall in the category's asset was capped by MTM gains in the underlying assets. Outflows from the category could be an outcome of the change in taxation announced by the new government in the Budget on 10 July.

The government increased the long-term capital gains tax on debt-oriented mutual funds from 10 per cent to 20 per cent

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