AUMs rise R1.06 lakh crore for the month, buoyed by positive market outlook & rate cut hopes
Indian mutual funds saw net inflows of R1.06 lakh crore in the month of January, according to data from Association of Mutual Funds in India (Amfi). Most inflows were seen in liquid/money market funds, followed by income funds and equity schemes. Positive equity markets and hopes of further rate cuts may have prompted such flows.
Data from Amfi shows that, equity funds saw net inflows of R5,850 crore in January 2015, its tenth consecutive months of net inflows.
Liquid/money market funds saw inflows of R85,848 crore while income schemes saw positive flows of R12,163 crore. Ratings agency Crisil said, “Inflows helped liquid funds become the biggest contributor to the industry assets under management (AUM) in the latest month. Historical trend has shown that quarter-end outflows in the category are reversed at the start of the quarter as banks and corporates re-invest the surplus funds they had withdrawn to meet quarter-ended reserve requirements and payment towards advance tax outflows, respectively”.
The total AUM of the industry stood at R11,81,356 crore in January 2015, a rise of 12% compared to R10,51,343 crore in December 2014. “We continue to see positive participation from investors across debt and equity products. With expectations of further rate cut, we expect investors will continue to invest in income as well as gilt funds fore few more months, said a CEO of a fund house. Apart from liquid and income schemes, gilt schemes also saw net inflows of R1,813 crore in January.
On the other hand, gold exchange traded funds (ETFs) continued to see outflows and saw R131 crore of net redemption in January 2015. Fund of fund investing overseas also saw outflows of R102 crorefor the month.
January also saw 7 new equity schemes launched by various fund houses collecting R2,284 crore. According to Amfi data, six of these schemes were close ended in nature, and collected R1,502 crore while the remaining one scheme which was open ended, collected R782 crore.