Mumbai: Domestic mutual funds have added over $20 billion (Rs80,000 crore) in July to their $100-billion kitty, driven by fresh capital raised through new fund offerings (NFOs) as well as a sharp rally in stock markets.
The total asset under management (AUM) of the country’s fund houses rose to Rs4,86,513 crore at the end of July, a jump of 21.5% from Rs4,00,333 crore a month ago, according to the latest data released by the Association of Mutual Funds in India.
The cash raised from NFOs such as Reliance Equity Advantage Fund and Franklin Templeton High Group Companies and a sharp rally in the stock market during the month, barring a major one-day fall on 27 July, were primary drivers in expanding the asset base of fund houses, the analysts said.
The stock market’s benchmark index, Sensex, achieved its 15,000 peak and gained a total of 886.73 points or 6.04% in the month.
Reliance Mutual Fund maintains its top position as the country’s largest fund house with AUM of Rs66,420.03 crore in July as against Rs59,857.01 crore for June, the AMFI data shows. Its assets have grown over 10% in the month.
ICICI Prudential remained at the second slot and added Rs5,074.8 crore in last month to its AUM which stand at Rs48,688.55 crore, while PSU major UTI MF is at the third rank with assets worth Rs42,547.60 crore in July.
Besides, assets under management of HDFC MF and Franklin Templeton MF stood at Rs40,153.47 crore and 32,213.84 crore respectively in July.
“AUMs of mutual funds have surged up due to few factors including new fund offers, existing schemes, lesser outflow of cash and the robust rally in the stock markets,“ mutual fund tracking firm Value Research Online CEO Dhirendra Kumar said.
Reliance MF, part of Anil Ambani group’s financial services arm Reliance Capital, also retained its top position in terms of average AUM for the month at Rs65,660.98 crore, followed by ICICI Prudential’s at Rs48,883.70 crore.
Last month, Reliance MF had raised Rs2,700 crore through its new scheme, Reliance Equity Advantage Fund. Reliance MF’s President Vikrant Gugnani said the success of the new fund offering is due to Reliance Mutual Fund’s strategy of rapidly expanding retail presence across markets.
Besides, Franklin Templeton High Growth Companies NFO collected around Rs1,515 crore.
Overall, according to Sebi data, mutual funds have been sellers in equities with a net sale of Rs900.60 crore in July even as they purchased over Rs12,800 crore in debt markets.