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Tuesday, May 11, 2010

MFs total asset surges by 31.69%

Income funds see maximum net inflow in April 

The total asset under management (AUM) of mutual fund (MF) industry surged by 31.69% or Rs 1.94 lakh crore to Rs 8.08 lakh crore in April 2010 from Rs 6.13 lakh crore in March 2010. On the other hand the Average Asset Under Management (AAUM) of MFs climbed 2.89% to Rs 7.69 lakh crore for the month of April compared with Rs 7.47 lakh crore in March. During March 2010 AUM and AAUM of the industry slipped 19.94% and 4.37% as corporate and banks had pulled out the money from mutual funds, to balance their account books as March was quarter and financial year end for business firms. Income and liquid fund category has been able to attract huge inflows in April, which had led to surge in assets of the industry. AAUM of fund of funds (FoFs) was at Rs 1571 crore in April 2010. 

All the 9 categories witnessed rise in AUM. Income funds witnessed highest net inflows of Rs 1.78 lakh crore, followed by Rs 9275 crore in liquid/money market funds. However, equity funds witnessed highest net outflow of Rs 1133 crore, followed by Rs 106 crore in 
ELSS-Equity category. The MF industry recorded the net inflow of Rs 1.86 lakh crore in April 2010 against the net outflow of Rs 1.62 lakh crore in March 2010. Income Funds had a highest growth of 59.23% in its total assets in April. Total AUM of Other ETFs and Gold ETF recorded growth of 32.81% and 7.61%, respectively in April. 

The funds mobilised from 5 newly launched schemes in April stood at Rs 608 crore. One open-ended equity fund, IDFC Nifty Equity Fund, was launched in April which mobilised Rs 4 crore. Four close-ended income funds were launched in April – Franklin Templeton Fixed Tenure Fund Series XII - Plan C, HDFC FMP 367D April 2010 (1) Series XII, Reliance Fixed Horizon Fund - XIV - Series 9 and XV – Series 4 which mobilised Rs 604 crore. 
 
Equity Funds 

Total AUM of equity funds surged by 1.59% to Rs 1.77 lakh crore in April from Rs 1.74 lakh crore in March, as equity benchmark indices rose marginally in April. The BSE Sensex and S&P CNX Nifty ended up with gains of 0.18% and 0.55% respectively in April, compared to gains of 6.68% and 6.64% respectively in March.

Despite rise in asset base the weightage of equity funds fell to 22% of the total assets of the industry in April as against 28% in March. Despite the assets base of the equity funds had surged, there has been redemption to a tune of Rs 1133 crore. This is the second consecutive month that the equity funds have witnessed net outflows.

Income Funds 

Total AUM of income funds increased by 59.23% to Rs 4.96 lakh crore in April over March. After witnessing net outflows to a tune of Rs 1.64 lakh crore in March, it was able to attract net inflows to a tune of Rs 1.78 lakh crore in April 2010, as corporate and banks have invested their money into this category. Share of assets of income funds in total AUM increased to 62% in April from 51% in March. 

Liquid Funds 

Liquid fund category witnessed net inflow for the second consecutive month and record second highest net inflows of Rs 9275 crore in April. The total asset increased by 7.34% to Rs 83827 crore in April compared to 6.93% surge in March. Share of assets of liquid funds in total AUM fell to 10% in April from 13% in March.

Gilt Funds 

AUM of gilt funds rose 1.21% to Rs 3436 crore in April from Rs 3395 crore in March. The gilt category, which saw net inflows of Rs 267 crore in March, witnessed net outflows in April to the tune of Rs 49 crore.
 
Other Funds
ELSS-Equity Funds witnessed net outflow of Rs 106 crore but witnessed a rise of 1.74% in its total assets. Assets of balanced funds scaled up by 2.96% in April. The balanced category witnessed net outflows to the tune of Rs 57 crore. This category had witnessed net outflows to the tune of Rs 40 crore in March.

Gold ETFs had net inflow of Rs 52 crore, its total AUM increased by 7.61% to Rs 1711 crore in April over Rs 1590 crore in March. The total AUM of Other ETFs increased 32.81% in April. Fund of Funds investing overseas recorded a marginal increase of 0.35% in assets.
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