that 2014 would be a very good year for the mutual fund industry," Axis Mutual Fund MD and CEO Chandresh Nigam said.
However, PwC India Asset Management Leader Gautam Mehra said: "With elections on the anvil, an element of 'uncertainty' could prevail for the next quarter or so."
During 2013, the performance of the mutual fund industry has, to an extent, mirrored the performance of the Indian economy, the stock markets and the FII investment flows.
This year, not a single new licence was issued and the sector has not witnessed any fresh foreign investment. On the contrary, 2013 was a year of consolidation for the industry.
HDFC MF, with assets of over Rs 1 lakh crore, agreed to buy all eight schemes of Morgan Stanley with combined assets of Rs 3,290 crore. Besides, Daiwa sold its assets to SBI Mutual Fund for an undisclosed amount this year.
For most part of the year, the bond funds had garnered a major share of incremental AUM. However, it is only in the last two months that have witnessed a significant rise in the AUM of the liquid category.
The data also suggests that the rise in the industry AUM is predominantly due to the flows into the liquid category on the back of higher than expected FCNR (Foreign Currency Non-resident) deposits mobilisation by banks and in the absence of a strong credit growth.
Inflows in income and liquid funds have contributed the most to the industry's rising AUM. With inflows of a staggering Rs 1.4 lakh crore, liquid funds AUM surged to Rs 2.46 lakh crore. A similar trend was seen in income funds, where inflows rose to around Rs 23,000 crore taking the assets managed by the fund to Rs 4.31 lakh crore.
However, investors continued to shy away from gold ETFs, with net outflows totalling Rs 1,659 crore. This takes the asset managed by the fund to Rs 9,325 crore. The category has seen outflows in nine out of the 11 months this year.
In August, gold ETF schemes had posted their highest monthly outflow in more than five years (Rs 588 crore) as the rupee's depreciation boosted