Mutual fund assets regained the Rs.10 trillion mark in July, boosted by inflows in money markets and equity funds, according to industry data collated by Crisil.
The assets under management (AUM) had crossed the Rs.10 trillion mark for the first time in May, when the markets rose after Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) came to power.
The mutual fund industry’s AUM rose 3.26 per cent, or by Rs. 31,737 crore, to Rs.10.06 trillion in July from Rs.9.75 trillion in June and fell slightly short of the record Rs.10.11 trillion in May, according to the monthly numbers released by the Association of Mutual Funds in India (Amfi), said Crisil. The rise in AUM was primarily due to inflows in equity and liquid funds.
Equity mutual funds’ AUM rose to a record high of Rs. 2.52 trillion in the month boosted by inflows of Rs.108.45 billion, the highest since January 2008. Total inflows since the start of 2014 amount to Rs. 189.34 billion, compared to net outflows of Rs.104.26 billion and Rs.156.20 billion in the preceding two calendar years respectively.
The underlying equity asset class represented by the Nifty gained 1.44 per cent in July and 22.48 per cent since the start of 2014 buoyed by hopes of economic reforms by the Modi government. Liquid funds’ AUM rose 13.07 per cent, or by Rs. 28,225 crore, to Rs. 2.44 trillion, led by inflows of Rs.
25,589 crore plus mark-to-market gains. Inflows in the category were basically cyclical in nature as companies and financial institutions ploughed the surplus money back into the funds that were withdrawn in June due to payment towards advance tax, Crisil added.