Debt funds spur 42% surge in India fund assets

Debt funds spur 42% surge in India fund assets

Mumbai: Assets of Indian mutual funds rose 42.23% to Rs5.9 trillion in April on record inflows in fixed income funds, data from the Association of Mutual Funds in India show.

This contrasts with a record Rs987 billion of outflows in March, that had lead to an 18% fall in the assets under management of the industry.

“There was a reversal in inflows in income and liquid funds after the huge redemptions in March. This is mostly institutional inflows, which have come back into fixed-income funds," Chintamani Dagade, a senior research analyst with Morningstar India, said.

Fixed income funds collectively mopped up Rs1,545 billion, including Rs1,030.55 billion inflow in income funds, the highest ever since mutual funds data was made available in late 1999.

The inflow also included a record Rs518.52 billion collected by money market funds as banks, flushed with liquidity, parked surplus cash in mutual funds.

Equity funds, however, saw a net outflow of Rs1.1 billion, their highest monthly outflow since December as investors took advantage of a more than 17% rise in India’s benchmark index to book profits.