The assets managed by mutual funds have rised by Rs 14,686.21 crore, or 2.77%, in August as compared to the previous month. The assets under management (AUM) declined for two consecutive months, June and July. The AUM has gone up because of improving financial market conditions and more fund mobilisation through fixed maturity plans (FMPs).
According to the Association of Mutual Funds in India (Amfi), the AUM was Rs 5,29,631.04 crore in July which increased to Rs 5,44,317.25 crore. Reliance Mutual Fund remains at the top slot with Rs 88,616.46 crore of AUM compared to 84,563.91 crore in July, posting a gain of Rs 4,052.55 crore, or 4.79%.
HDFC Mutual Fund gained 6.12%, or Rs 3,106.59 crore, at Rs 53,858.63 crore compared to Rs 50,752.03 crore in July.
Dhirendra Kumar, CEO of Value Research Online said, ?In the last couple of days, we have seen the markets performing better every day and that is the reason why we have seen an increase in AUM. In August, we saw equity schemes performing better compared to other schemes and generating more inflows.? Barring gold funds, all other funds have done well, added Kumar.
Commenting on the overall MF market and its future, Kumar said, ?I think if the rise in Indian markets continues, we might see some fresh inflows in the MF industry.?
ICICI Prudential was down with Rs 2,067.87 crore, or 3.75%, at Rs 53,092.78 crore compared to Rs 55,160.65 crore in July. While UTI MF gained Rs 827.41 crore, or 1.79%, at Rs 46,947.32 crore compared to Rs 46,119.90 crore in July.
The biggest gainer in August was Bharti AXA MF, which registered a growth of Rs 179.32 crore, or 78.27%, at Rs 408.44 crore compared to Rs 229.11 crore in July. NK Garg, CEO of Sahara Mutual Fund, said, ?The increase in equity valuations in the past couple of trading sessions is the only reason for the increase in AUM. In the last month, we have seen a good amount of funds mobilised through FMP schemes. Now, we assume that the market has bottomed out and we may once again see AUM moving north in the coming months.?