In a significant development, the Indian mutual fund industry crossed the Rs 11-lakh-crore mark...
In a significant development, the Indian mutual fund industry crossed the R11-lakh-crore mark in October-December quarter of 2014. Strong equity market performance and resultant inflows led fund houses to post a surge in assets for the quarter.
According to data from Association of Mutual funds in India (Amfi), average assets under management (AAUM) of fund houses stood at R11.05 lakh crore in October-December quarter, a rise of R45,951 crore or 4.33% as against an AAUM of R10.59 lakh crore for the July-September quarter .
HDFC Mutual Fund retained its top spot and breached the R1.5 lakh crore mark for the quarter. Milind Barve, MD of HDFC Mutual Fund says, “There has been a radical change in sentiment over the past few months, especially after the election results in May. We are witnessing a trend where more and more investors are coming back into financial assets Positive investment returns also attracted investors into both equity as well as debt funds.” HDFC MF’s average AUM was at R1,50,467 crore in October-December quarter a jump of 6.4% as against average AUM of R1,41,480 crore for July-September, 2014.
ICICI Prudential Mutual Fund was a close second with an average AUM of R1.36 lakh crore and Reliance Mutual Fund was at third position with average AUM of R1.26 lakh crore for the October-December quarter. Out of 41 fund houses, 12 saw negative growth in their average AUM, but many small players like Edelweiss Mutual Fund, Motilal Oswal Mutual Fund, IIFl Mutual Fund and Mirae Asset Mutual Fund saw substaintail rise in their average AUM for the quarter.
“We saw good response even for the long-term debt schemes like income and gilt schemes in the last few months. Overall for the past few months there has been continuous inflows into debt and equity schemes and I hope it remains strong going forward,” added Barve. Among the top ten fund houses, highest growth was seen by Franklin Templeton Mutual Fund, as its average AUM for October-December quarter was at R63,642 crore rise of 1.4% as against R55,611 crore for quarter of July-September,2014.
The mutual fund industry will be now looking at monthly data by Amfi which will show category wise inflows in the month of December, 2014. If market participants are to believed, equity funds might see ‘record inflow’ in December, 2014.