While the stocks markets continued to remain firm, fund managers took respite money markets to battle redemption pressure saw assets under management decline. However, this trend has been arrested in the month of October when the Indian mutual fund (MF) industry witness a growth of around 17% in its assets under management (AUM). The AUM mark now crosses Rs 5 lakh crore mark.
Fearing a sharp correction, investors withdrew money from equity schemes when the benchmark indices were scaling new highs to only reinvest that in liquid and liquid plus plans. According to the Association of Mutual funds in India (Amfi) the asset under management (AUM) of the MF industry stood at Rs 5,56,729.69 crore an increase of around Rs 79,740.69 crore or 16.71%.
?Money that were seen getting out from equity linked schemes, were reinvested in debt or money market instruments. Specially banks with surplus funds, parked their money in these schemes,? said a fund manager.
In October, according to the Securities and Exchange Board of India (Sebi), equity schemes witnessed redemptions of around Rs 1,715.20 crore, while debt or money market saw an inflow of around Rs 11,993.60 crore. In fact from April to October this financial year (FY) equities schemes has witnessed a net inflow of around Rs 2,749.20 crore, while debt instruments have witnessed a net investments of around Rs 59,174.50 crore. In terms of AUM, Reliance Mutual Fund (RMF) continued to be on the top with Rs 79,978.83 crore. ICICI Prudential Mutual Fund and UTI Mutual Fund followed with assets worth Rs 56,212.84 crore and Rs 51,752.65 crore respectively.