Mutual fund Industry’s month-end assets under management (AUM) have recovered most of their losses from September to gain by around seven percent (Rs 48,000 crore) to Rs 7,68,000 crores in October 2012 observes a CRISIL report. This is the highest month-end AUM of the industry since April 2011. CRISIL owes this rise due to inflows of Rs 46700 crore, most of the same going to income and liquid funds.
Among mutual fund category, Income funds have reported the highest inflows at Rs 29,330 crore. The category assets increased by around 9% (Rs 31,100 crore) to Rs 3,84,000 crore. The report adds that the with status quo on the interest rates being maintained by the Reserve Bank in the latest monetary policy, investors continued to prefer dynamic bond funds, short-term and ultra short-term debt funds within the category.
The interest rate uncertainty has benefited these funds and they were able to garner assets.
Equity funds registered outflows for the fifth consecutive month in October due to profit booking by investors. Gilt funds were the ones that witnessed highest inflows in last four years. Inflows rose to Rs 1,000 crore during the month of October.
Gold exchange traded funds (ETFs) saw inflows of Rs 387 crore in October against Rs 332 crore in the month of September leading the assets of gold ETFs rising to Rs 11,500 crore. This was in spite of Gold prices as indicated by CRISIL Gold index declining by 1.13 percent in October tracking global trends.