HOME         WEBSITE         SUBSCRIBE           E-GREETINGS   
                               

Monday, November 09, 2009

Huge inflow in income funds lead MF's asset base to grow

MF's total AUM jumps 23.38% in October 2009 

The mutual fund (MF) industry had witnessed a surge of 23.38% in total asset under management (AUM) to Rs 774796 crore in October 2009 from Rs 627999 crore in September 2009. The Average Asset Under Management (AAUM) of MFs rose 2.64% to Rs 762502.93 crore for the month of October 2009 compared with Rs 742910.84 crore in September 2009. AAUM of fund of funds (FoFs) was Rs 860.54 crore in October 2009. Asset of the industry increased on account of huge inflow in income funds. The MFs net investments of debt securities crossed Rs 34300 crore- highest in the current financial year. However, major benchmark indices failed to add on the total AUM in this month. Bombay Stock Exchange's Sensex and National Stock Exchange's Nifty tumbled 7.18% and 7.32%, respectively, in October 2009.

Association of Mutual Funds in India (AMFI) has released monthly data of the industry for October 2009. The MF had launched fifteen schemes in income and liquid categories in month of October 2009. 14 schemes were from income category; 1 from open-ended liquid /money market category in October 2009. These funds have mobilised Rs 6,270 crore.

Income funds had a highest growth of 48.58% in its total assets in October 2009. Total AUM of liquid funds and gold ETFs recorded growth of 6.60% and 7.53%, respectively in October 2009. While the losers were other ETFs, balanced funds, equity, fund of funds that posted negative growth of 8.82% and 5.98%, 5.22% and 5.18%, respectively.

The MF industry had seen net inflow of Rs 141291 crore in October 2009 from net outflow of Rs 144327 crore in September 2009.

Equity Funds
 
Total AUM of equity funds decreased by 5.22% to Rs 161017 crore in October 2009 from Rs 169887 crore in September 2009, as equity benchmark indices fell above 7% in October 2009. The BSE Sensex and the S & P CNX Nifty fell 7.18% and 7.32%, respectively, in October 2009. However, domestic mutual funds' net selling in equities increased to Rs 5194.30 crore in October 2009 compared with net selling of Rs 2334.60 crore in September 2009. It resulted into a net outflow of Rs 2123 crore from equity funds in October 2009. Equity funds contributed 21% to total AUM in October 2009 less than 27% in September 2009.

Income Funds
 
Income funds are categorized into three types: open-ended, interval funds and close-ended funds. Total AUM of income funds zoomed 48.58% to Rs 463430 crore in October 2009 over September 2009. Net inflow towards income funds had Rs 151271 crore in October 2009 as against net outflow of Rs 112232 crore in September 2009. Share of assets of income funds in total AUM increased to 60% in October 2009 from 50% in September 2009.

Liquid Funds
 
Liquid funds provide easy liquidity so that it invests in short term instruments. Corporate, banks and individual investors prefer these funds to park their money for short period. Generally, at the end of quarter, corporate, banks pull out money from these funds to meet advance tax payment. In 2nd quarter ended September 2009, they redeemed huge amount from liquid funds which led to fall in its AUM in September. But in October, they preferred to park funds into liquid funds that led to rise in its AUM of 6.60% to Rs 104250 crore in October 2009 compared with September 2009. While, it recorded net outflow of Rs 7344 crore in October 2009.

Gilt Funds
 
AUM of gilt funds fell 4.60% to Rs 3835 crore in October 2009 from Rs 4020 crore in September 2009. Gilt funds had net outflow of Rs 210 crore.

Other Funds
 
ELSS-Equity funds witnessed net outflow of Rs 27 crore with a fall of 4.19% in its total assets. Balanced funds decreased by 5.98% in October 2009. Gold ETFs had net inflow of Rs 45 crore, its total AUM increased by 7.53% to Rs 1085 crore in October 2009 over Rs 1009 crore in September 2009. The total AUM of other ETFs plunged 8.82% in October 2009. Fund of Funds investing overseas recorded a dip of 5.18% in assets.
Posted by

Blog Archive

____________________________________________________________________________________________

Disclaimer - All investments in Mutual Funds and securities are subject to market risks and uncertainty of dividend distributions and the NAV of schemes may go up or down depending upon factors and forces affecting securities markets generally. The past performance of the schemes is not necessarily indicative of the future performance and may not necessarily provide a basis for comparison with other investments. Investors are advised to go through the respective offer documents before making any investment decisions. Prospective client(s) are advised to go through all comparable products in offer before taking any investment decisions. Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the fund will be achieved. Information gathered & material used in this document is believed to be from reliable sources. Decisions based on the information provided on this newsletter/document are for your own account and risk.


In the preparation of the material contained in this document, Varun Vaid has used information that is publicly available, including information developed in-house. Some of the material used in the document may have been obtained from members/persons other than the Varun Vaid and which may have been made available to Varun Vaid. Information gathered & material used in this document is believed to be from reliable sources. Varun Vaid however does not warrant the accuracy, reasonableness and/or completeness of any information. For data reference to any third party in this material no such party will assume any liability for the same. Varun Vaid does not in any way through this material solicit any offer for purchase, sale or any financial transaction/commodities/products of any financial instrument dealt in this material. All recipients of this material should before dealing and or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice.


Varun Vaid, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material. All recipients of this material should before dealing and/or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice. The investments discussed in this material may not be suitable for all investors. Any person subscribing to or investigating in any product/financial instruments should do soon the basis of and after verifying the terms attached to such product/financial instrument. Financial products and instruments are subject to market risks and yields may fluctuate depending on various factors affecting capital/debt markets. Please note that past performance of the financial products and instruments does not necessarily indicate the future prospects and performance there of. Such past performance may or may not be sustained in future. Varun Vaid, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation in the financial instruments/products/commodities discussed here in or act as advisor or lender / borrower in respect of such securities/financial instruments/products/commodities or have other potential conflict of interest with respect to any recommendation and related information and opinions. The said person may have acted upon and/or in a manner contradictory with the information contained here. No part of this material may be duplicated in whole or in part in any form and or redistributed without the prior written consent of Varun Vaid. This material is strictly confidential to the recipient and should not be reproduced or disseminated to anyone else.


Varun Vaid also does not take any responsibility for the contents of the advertisements published. Readers are advised to verify the contents on their own before acting there upon.


Published Credits goes to following sources & all the mentioned sources as footer below the published material- Bloomberg, Valueresearch Online, Capital Market, Navindia, Franklin Templeton, Kitco, SBI AMC, LIC AMC, JM Financial AMC, HDFC AMC, The Hindu, Business Line, Personal FN, Economic Times, Reuters, Outlook Money, Business Standard, Times of India etc.