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Wednesday, December 09, 2009

MFs' total Asset rise by 6%

Income and liquid funds seen inflow in November 2009 

The total asset under management (AUM) of mutual fund (MF) industry increased by 6.05% to Rs 821659 crore in November 2009 from Rs 774796 crore in October 2009. The Average Asset Under Management (AAUM) of MFs rose 5.91% to Rs 807546.39 crore for the month of November 2009 compared with Rs 762475.34 crore in October 2009. AAUM of fund of funds (FoFs) was Rs 953.79 crore in November 2009. Asset of the industry expanded owing to huge inflow in income funds and liquid funds. The MFs net investments of debt securities crossed Rs 16098.6 crore. In addition, major benchmark indices also contributed in advancement of the total AUM in this month. Bombay Stock Exchange's Sensex and National Stock Exchange's Nifty gained 6.48% and 6.81%, respectively, in November 2009.

Association of Mutual Funds in India (AMFI) has released monthly data of the industry for November 2009. The MF had launched eleven schemes in income and equity and fund of funds investing overseas categories in month of November 2009. 9 schemes were from income category; 1 from open-ended equity category and 1 from FoFs investing overseas category in November 2009. These funds have mobilised Rs 947 crore.
Other ETFs had a highest growth of 34.56% in its total assets in November 2009. Total AUM of gold ETFs and income funds recorded growth of 17.51% and 8.27%, respectively in November 2009. While liquid/money market funds and gilt funds proved to be losers with negative growth of 3.18% and 5.71%, respectively.

The MF industry had seen deceleration in net inflow to Rs 45124 crore in November 2009 from net inflow of Rs 141291 crore in October 2009.

Equity Funds
 
Total AUM of equity funds surged by 5.72% to Rs 170229 crore in November 2009 from Rs 161017 crore in October 2009, as equity benchmark indices rose above 6% in November 2009. The BSE Sensex and the S & P CNX Nifty surged 6.48% and 6.81%, respectively, in November 2009. However, domestic mutual funds' net selling in equities had been reduced to Rs 695.6 crore in November 2009 compared with net selling of Rs 5194.3 crore in October 2009. It resulted into a net outflow of Rs 1,109 crore from equity funds in November 2009. Equity funds contributed 21% to total AUM in November 2009.

Income Funds
 
Income funds are categorized into three types: open-ended, interval funds and close-ended funds. Total AUM of income funds increased by 8.27% to Rs 501739 crore in November 2009 over October 2009. Net inflow towards income funds had slowed down to Rs 37,649 crore in November 2009 as against net inflow of Rs 151271 crore in October 2009. Share of assets of income funds in total AUM increased to 61% in November 2009 from 60% in October 2009.

Liquid Funds
 
Liquid funds provide easy liquidity so that it invests in short term instruments. In November, liquid funds posted AUM of Rs100931 crore- a fall of 3.18%. While, the category had net inflow of Rs 8581 crore in November from net outflow of Rs 7344 crore in October 2009.

Gilt Funds
 
AUM of gilt funds fell 5.71% to Rs 3616 crore in November 2009 from Rs 3835 crore in October 2009. Gilt funds had net outflow of Rs 260 crore.

Other Funds
 
ELSS-Equity funds witnessed net inflow of Rs 36 crore with a rise of 6.92% in its total assets. Assets of balanced funds scaled up by 4.67% in November 2009. Gold ETFs had net inflow of Rs 65 crore, its total AUM increased by 17.51% to Rs 1275 crore in November 2009 over Rs 1085 crore in October 2009. The total AUM of other ETFs jumped 34.56% in November 2009. Fund of Funds investing overseas recorded a rise of 5.99% in assets.
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