Buoyant inflows in equity and short- maturity debt funds lifted average assets under management of the country’s mutual funds in the quarter ended June to a new record and above the Rs 14 trillion mark for the first time, says a report.
At Rs 14.41 trillion, average AUM beat the previous high of Rs 13.53 trillion logged in the previous quarter and was up by 6.47 per cent or Rs 875.83 billion – also a record in absolute gain-over the quarter, a report by Association of Mutual Funds in India (AMFI) said.
It said equity funds’ AUM spurted 7.59 per cent or Rs 334.18 billion to a record Rs 4.74 trillion. Robust inflows of Rs 91.59 billion (April-May data) and mark-to market gains as the equity market, as represented by the Nifty 50, gained over 7 per cent in the quarter, helped.
Short-term debt funds saw assets swell by Rs 100.05 billion to a new high of Rs 1.60 trillion, way above the Rs 15.25 billion growth seen in the preceding quarter. Ultra short-term fund assets rose Rs 139.97 billion to Rs 1.47 trillion, after a decline in the two preceding quarters, it added.
Liquid fund assets made a new peak of Rs 3.42 trillion with a gain of Rs 195.75 billion, after having risen Rs 282.70 billion the previous quarter.
As per the report, income fund assets shrunk Rs 35.81 billion, lower than the decline of Rs 57.37 billion seen the previous quarter to Rs 938.73 billion.
Gilt fund assets lost a record Rs 21.03 billion to Rs 152.07 billion, breaking the uptrend since December 2014, it said.
Assets of fixed maturity plans (FMPs) increased for the third quarter on the trot, up Rs 122.44 billion at Rs 1.43 trillion, after having run up Rs 114.44 billion and Rs 53.06 billion, respectively, in the two preceding quarters because of MTM gains and stable demand.
In April-May, fund houses garnered Rs 19.39 billion by launching 22 FMPs compared with Rs 182.49 billion through 105 FMPs launched the preceding quarter.
Gold prices, as represented by Crisil Gold Index, rose over 8 per cent. Gold ETF assets gained 1.04 per cent, or Rs 0.66 billion, to Rs 64.01 billion. However investors chose to book profit as seen from outflows of Rs 1.48 billion in April-May 2016, the report noted.
Average AUM of direct plans rose to a new high of Rs 5.35 trillion, up 8.06 per cent, or Rs 399.08 billion.
The share of direct plans in overall AUM inched up marginally to 37.12 per cent from 36.57 per cent the preceding quarter.
Of the 42 fund houses which have declared average AUM, 31 logged growth. The share of the top five and top 10 rose to 57 per cent and 81 per cent, respectively, from 56 per cent and 80 per cent in the preceding quarter.
ICICI Prudential Mutual Fund remained at the top slot in terms of assets, with a gain of 9.90 per cent, or Rs 174 billion, to Rs 1.93 trillion, AMFI said.
HDFC Mutual Fund came a close second, just Rs 5 billion behind the leader, with a jump of 9.67 per cent, or Rs 170 billion.
Reliance Mutual Fund maintained its third position with Rs 1.67 trillion, up 5.43 per cent, or Rs 86 billion.
Assets of industry heavyweights-ICICI Prudential Mutual Fund, HDFC Mutual Fund and SBI Mutual Fund (in this order)- rose the highest in absolute terms, AMFI said.