Asset under management: Mutual funds AUMs rise 12.5% in November

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Mumbai | Published: December 18, 2018 12:11:55 AM

However, the share of liquid/money market schemes to the total AUM has increased to 24.7% in November from 15.7% in March.

Mutual fund AUMs rise 12.5% in November

Assets under management (AUMs) of mutual funds stood at Rs 24.03 lakh crore in November, against Rs 21.36 lakh crore in March, a rise of 12.5%. But the share of growth/equity-oriented schemes to the total AUM has come down to 34.6% in November compared to 35.1% in March, shows a recent report by CARE Ratings.
However, the share of liquid/money market schemes to the total AUM has increased to 24.7% in November from 15.7% in March.

The report from CARE Rating stated that, “Liquid funds are perceived to be less risky than other debt instruments and at the same time offer higher returns compared with bank deposits. A rising rate scenario tends to be more beneficial for such funds as they get rolled over every 91 days thus providing the benefit of higher rates.”

The total AUM of income/debt oriented schemes stood at `12.93 lakh crore in November as compared to Rs 11.34 lakh crore in March this year. While AUM of liquid/money market funds increased to `5.93 lakh crore in November as against `3.35 lakh crore in March.

“There has been interest in both the debt and equity segments by savers which include both corporates and households. Higher returns in the debt segment relative to bank deposits as well as an upward looking but volatile stock market has found investors’ interest. In addition, the recent shift to debt schemes could be partly attributed to the fading impact of concerns in the NBFC sector which has re-built confidence among investors moving them towards debt schemes,” said the report.

The inflows into equity funds have been down in the last few months. In November, inflows into equity funds stood at `10,790 crore, lowest in last three months, shows the data from Association of Mutual Funds in India (Amfi). The pattern of investment of mutual funds in various debt instruments shows that, share of corporate debt has come down for the non-NBFC and non-real estate sector from 28.2% to 22.7% on a point to point basis between March and November.

“Within corporate debt the share of NBFCs has come down, though interestingly it declined to 7.1% in August and then regained some distance by moving up to 7.5% in Sept and 8% in the subsequent months. For CPs the share of NBFCs was higher than that in March, but had started moving downwards from September onwards from 9.8% in August to 9.5% in Sept, 9.4% in Oct, and 9.1% in November,” said the report.

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