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Wednesday, August 12, 2009

Total assets of MF increased by 23.89% in July 2009

Liquid and Income Funds record highest inflow

The mutual fund (MF) industry registered 23.89% increase in total asset under management (AUM) at Rs 7.21 lakh crore as on 31 July 2009 from Rs 5.83 lakh crore as on 30 June 2009. The increase in total assets was largely due to huge inflow on account of income and liquid funds. The AUM has increased for July 2009 after a steep fall of 12.31% in the previous month 30 June 2009, owing to huge outflow in income and liquid funds. However, the income funds and liquid funds assets grew by 33.64% and 25.12% respectively as on 31 July 2009 over 30 June 2009.

However the Average Asset Under Management (AAUM) of MFs has marginally increased by 2.99% to Rs 6.90 lakh crore in July 2009 compared with Rs 6.70 lakh crore in June 2009, according to the data released by the Association of Mutual Funds in India (AMFI). AUM of fund of funds (FoFs) stood with Rs 2563 crore in July 2009.

Association of Mutual Funds in India (AMFI) has released monthly data of the industry for July 2009. there were five schemes launched in the month of July in income, equity, liquid and gilt fund categories. The new funds launched have mobilized around Rs 2733 crore for the period. The MF industry recorded the net inflow of Rs 123679 crore in July 2009 against the outflow of Rs 83937 crore in June 2009.

The income funds registered highest increase of 33.64% followed by liquid funds that increased by 25.12% in the total assets. While the loosers were gilt funds that dipped by 18.85% and other ETFs that dipped by 2.23% as on July 2009.

Equity Funds

The total asset of equity funds has zoomed by 9.79% to 1.57 lakh crore as on 31 July 2009 from Rs 14.28 lakh crore as on 30 June 2009, as equity benchmark indices increased by 8% in July 2009. The BSE Sensex surpassed 15000 levels to 15670 levels, registering a growth of 8% during the month of July 2009. Similarly the Nifty also rose by 8% to 4636 during July 2009.New equity schemes brought Rs 2,394 crore in July, the highest so far in the year. Sales from existing equity schemes were also the highest in July 09 crowning Rs 6,343 crore. Sales from existing equity schemes have been steadily improving since May after hitting a low of Rs 1,409 crore in January 09. The lacklustre response continued in February and March as well.

The equity funds witnessed a net inflow of Rs 4232 crore and redemption of Rs 4505 crore in the month of July 2009. Two new funds have been launched during this month in this category mobilizing a mere amount of Rs 2394 crore. However the weightage of the equity funds towards the total assets of the industry declined to 22% in July as against 25% in June 2009.

Income Funds

Income funds, which can be categorized into three types open-ended, interval funds and close ended funds, have witnessed the net inflow of Rs 95764 crore compared to outflow of Rs 51021 crore in June 2009. The income funds recorded the redemption of Rs 1.52 lakh crore as against Rs 1.87 lakh crore in June 2009. Total asset of income funds increased by 33.64% to 3.81 lakh crore July 2009 as against fall of 15.55% to Rs 2.84 lakh crore in June 2009 over May 2009. Income funds AUM weighs 53% to the total AUM in July 2009 as against 49% in June 2009.

Liquid Funds

Liquid funds recorded the inflow in the month of June 2009 compared to outflow in the month of June 2009. The total asset was up by 25.12% to Rs 1.39 lakh crore in its total AUM in July 2009 compared with June 2009, which dipped by 21.16% in total AUM. It recorded the net inflow of Rs 24698 crore in July 2009. Liquid funds also witnessed redemption of Rs 6.46 lakh crore as against outflow of Rs 6.10 lakh crore in June 2009.

Gilt Funds

AUM of gilt funds fell 18.85% to Rs 4447 crore in July 2009 from Rs 5480 crore in June 2009. Gilt funds had net outflow of Rs 1061 crore and redemption of Rs 1501 crore for July 2009.

Other Funds

ELSS-Equity Funds witnessed net inflow of Rs 11 crore and increased by 8.62% in its total assets. Gold ETFs registered net inflow of Rs 40 crore and its total AUM increased by 2.49% to Rs 865 crore in July 2009 over Rs 844 crore in June 2009. The total AUM of other ETFs declined by 2.23% in July 2009 and Fund of Funds recorded 1.76% fall in assets. However, balanced fund has recorded the 6.00% rise in the July 2009 over June 2009.

Mutual Funds were net buyers of Rs 1825.50 crore in the equity market and net buyer of Rs 28963.20 crore in debt market in the month of July 2009.

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