Mumbai: Indian mutual funds’ assets under management (AUM) grew Rs860 billion in July to a corpus of Rs4.89 trillion driven by a large number of new fund offerings, a sharp rally in the equity markets and liquid fund inflows.
Reliance Mutual Fund topped the AUM chart with its AUM in excess of Rs660 billion, while ICICI Prudential Mutual Fund came second with an AUM of Rs487 billion.
UTI Mutual Fund was in the third spot with its AUM at Rs425 billion.
In the secondary market, mutual funds were net sellers to the extent of Rs9 billion in July, after being net buyers of Rs7 billion in June.
“Growth of this magnitude in a single month has rarely been seen in the Indian mutual fund industry,” said Krishnan Sitaraman, head, fund services and fixed income research, Crisil, in a statement issued here on 14 August.
All of Crisil’s fund indices ended positive for the fourth straight month in July and returns were higher than in June, mainly due to robust market performance, Crisil said.
It also pointed to the fact that in July the Cabinet Committee on Economic Affairs allowed navaratnas and mini-ratnas in the public sector to invest up to 30% of their surplus funds in public sector equity MFs.
“As a result, after a nine-year gap, these organisations can again invest in equity mutual funds,” Crisil said, adding “the move could result in investment flows of Rs600 billion into the sector from cash-rich public sector undertakings.”