New Delhi: Mutual fund investors put in more than Rs1,23,000 crore into various schemes in July2009, the second biggest infusion in a month this fiscal. The investments directed mainly towards fixed income plans.
The Association of Mutual Funds of India (AMFI)in a monthly report said at the end of July, investors had put in funds worth Rs 1,23,679 crore.
This is the second biggest inflow in the fiscal 2009-10 after the Rs1,54,192 crore investment in April.
The mutual fund (MF) industry had witnessed outflows worth Rs83,937 crore in June, after two consecutive months of inflows, which analysts believe was mainly on the back of a heavy pull-out by banks.
At the end of July, fixed income plans with assured annual returns, saw a maximum investment of Rs95,764 crore, followed by liquid or money market funds which have a higher liquidity and a short maturity period, that saw inflows worth Rs24,698 crore.
Besides, equity funds investing in stocks attracted investments worth Rs4,232 crore.
“The banks can better anticipate the interest rate scenario in the country and accordingly they change their investment strategy,” Taurus Mutual Fund managing director RK Gupta said.
However, Gilt funds, which invest in government securities, saw outflows to the tune of Rs 1,061 crore during the month.
So far this fiscal, the MF industry has seen net inflows worth Rs2,24,082 crore, while the same was at Rs48,137 crore in the first four months of the previous fiscal.
Analysts believe that volatility in the stock market has made banks park their surplus cash with income or debt funds with assured returns, thereby helped the MF industry’s average assets under management (AUM) inch closer to the Rs7,00,000 crore mark at the end of July.
The combined AUM of the 36 fund houses in the country rose to Rs6,89,946.10 crore in July, an increase of Rs19,009.49 crore or 2.83% over the period a month ago.
“The equity market action has propelled fund buying in shares leading to an increase in AUM. Besides, fresh deployment by banks in MF schemes propelled the growth in AUMs,” Gupta added