Income and Liquid Funds recorded highest outflow
The mutual fund (MF) industry registered a fall of 19.05% in total
asset under management (AUM) to Rs 6.65 lakh crore as on 31 December
2009 from Rs 8.22 lakh crore as on 30 November 2009. The decline in
total asset during was largely due to huge outflow on account of income
and liquid funds.
Average Assets under management (AAUM) of MF reduced by 1.62%
to Rs 7.94 lakh crore in December 2009 compared with Rs 8.07 lakh crore
in November 2009, according to the data released by the Association of
Mutual Funds in India (AMFI). AUM of fund of funds (FoFs) stood with Rs
1043 crore in December 2009. Mutual Funds were net sellers of Rs
1761.90 crore in the equity market and net buyer of Rs 2221.30 crore in
debt market in the month of December 2009.
Association of Mutual Funds in India (AMFI) has released monthly
data of the industry for December 2009. The industry has launched 10
schemes totally out of which, eight schemes belong to income fund, one
scheme in ELSS- equity and one Fund of funds categories in month of
December 2009. The new funds launched have mobilized around Rs 1286
crore for the period.
The income funds registered the highest drop of 28.16% during
December 2009. The liquid funds took the second place registering fall
of 20.64% in the total assets. The fall in income and liquid funds are
largely on account of redemption pressure courtesy, advance tax
payments for quarter ended December 2009. While the top two gainers
were gold ETF and ELSS- equity registering increase of 6.04% and 4.18%
respectively.
The MF industry recorded the net outflow of Rs 157204 crore in
December 2009 against the inflow of Rs 45124 crore in November 2009.
Equity Funds
The total asset of equity funds has increased by 2.62% to 1.75 lakh
crore as on 31 December 2009 from Rs 1.70 lakh crore as on 30 November
2009, as equity benchmark indices showed increase in December 2009. The
Bombay Stock Exchange's Sensex and National Stock Exchange's Nifty
gained 3.18% and 3.36%, respectively, in December 2009.
The equity funds witnessed a net outflow of Rs 2185 crore and
redemption of Rs 6232 crore in the month of December 2009. However the
weightage of the equity funds towards the total assets of the industry
increased to 26% in December as against 21% in November 2009.
Income Funds
Income funds, which can be categorized into three types open-ended,
interval funds and close ended funds, have witnessed the net outflow of
Rs 140789 crore in December 2009 compared to inflow of Rs 37649 crore
in November 2009. The income funds recorded the redemption of Rs 3.72
lakh crore as against Rs 1.89 lakh crore in November 2009. Total asset
of income funds plunged by 28.16% to 3.60 lakh crore December 2009 as
against Rs 5.02 lakh crore in November 2009. This led to the decline in
Income funds AUM weightage dip to 54% as against 61% in November 2009.
Liquid Funds
Liquid funds also recorded outflow in the month of December 2009
compared with inflow in November 2009. The total asset declined by
20.64% to Rs 80102 crore in its total AUM in December 2009 compared
with November 2009 which dipped by 3.18% in total AUM. It recorded the
net outflow of Rs 14267 crore in December 2009. Liquid funds also
witnessed redemption of Rs 5.53 lakh crore as against Rs 6.02 lakh
crore in November 2009.
Gilt Funds
AUM of gilt funds fell marginally by 0.19% to Rs 3609 crore in
December 2009 from Rs 3616 crore in November 2009. Gilt funds had net
inflow of Rs 12 crore and redemption of Rs 552 crore for December 2009.
Other Funds
ELSS-Equity Funds witnessed net inflow of Rs 113 crore and increased
by 4.18% in its total assets. Gold ETFs registered net inflow of Rs 152
crore and its total AUM increased by 6.04% to Rs 1352 crore in December
2009 over Rs 1275 crore in November 2009. The total AUM of other ETFs
declined by 11.73% in December 2009 while the Fund of Funds recorded a
rise of 2.51% in its assets. Assets of balanced fund have increase of
1.12% in December 2009.