Mutual funds average AUMs hit record high in September quarter

The mutual fund industry gained a record Rs1.70 trillion, or 11.78%, to hit a historic high of Rs16.11 trillion during the quarter

Ami Shah
Updated5 Oct 2016, 08:47 PM IST
ICICI Prudential Mutual Fund, HDFC Mutual Fund and Reliance Mutual Fund maintained the top three slots among fund houses.
ICICI Prudential Mutual Fund, HDFC Mutual Fund and Reliance Mutual Fund maintained the top three slots among fund houses.

Mumbai: The mutual fund industry’s average assets under management (AUM) hit a historic high of 16.11 trillion, excluding fund of funds, in the quarter ended September, Crisil Research said in a statement, citing numbers released by the Association of Mutual Funds in India (AMFI).

The industry gained a record 1.70 trillion, or 11.78%, during the quarter, led by a rise in assets of equity and short-maturity debt funds. Of the 43 fund houses, including infrastructure debt funds, which have declared average AUM, only four witnessed a fall, the research arm of rating agency Crisil Ltd. said.

ICICI Prudential Mutual Fund, HDFC Mutual Fund and Reliance Mutual Fund maintained the top three slots among fund houses.

Equity funds scaled a new high, crossing the 5 trillion mark to close at 5.37 trillion led by a strong mix of inflows and mark-to-market (MTM) gains.

The category rose 13.44%, or by 636.58 billion–a record in absolute terms, during the quarter, while the benchmark Nifty index gained 3.90% in the quarter. The category has benefitted from strong positive sentiment for the asset class as seen in uninterrupted net inflows of 2.16 trillion since May 2014.

Also Read: Balanced fund inflows: performance and incentives

Short-maturity debt funds continued to gain traction as investors preferred investing in a less volatile debt category compared with long-maturity debt funds amid uncertainty over the interest rate scenario in the country.

Within this fund category, ultra short-term and short-term debt funds posted record growth in absolute terms of 332.96 billion and 336.40 billion, respectively, to a new high of 1.8 trillion and 1.94 trillion, respectively.

Liquid funds’ assets also hit a new peak of 3.72 trillion with a gain of 297.42 billon, following an increase of 195.75 billion in the previous quarter.

Long-maturity debt funds posted marginal growth in the September quarter led by expectations that the Reserve Bank of India (RBI) may announce a rate cut, which the central bank did on Tuesday by lowering the repo rate by 25 basis points to 6.25%, six months after the last rate reduction.

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First Published:5 Oct 2016, 08:47 PM IST
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