The mutual fund industry reported a 4% increase in average asset under management to Rs 6.92 lakh crore in the April-June quarter, a Crisil research report said.
The average AUM stood at Rs 6.65 lakh crore in the same quarter of 2011-12.
Debt-oriented funds, especially money market funds, saw the highest gain in assets across categories, up 11.5% to Rs 1.64 lakh crore in the June quarter, forming 24% of the industry assets, it said.
"This is the first quarter of gain in assets for money market funds in four quarters and could have been prompted by slight easing in liquidity pressures in the domestic financial system.
"Liquidity in the banking system has eased due to proactive measures by the RBI to cut interest rates in its annual policy review in April and due to gilt purchases from the open market," Crisil said.
It said assets of money market funds or liquid funds grew by Rs 16,900 crore, ultra short-term debt funds by Rs 6,900 crore, fixed maturity plans (FMPs) by Rs 2,900 crore and other debt-oriented funds by Rs 5,800 crore over the past quarter.
However, equity funds witnessed a decline of Rs 5,300 crore in AUM owing to weak sentiments prevailing in the asset class in the quarter gone by.
Crisil pointed out that nine out of 44 fund houses post rise in average AUM, with Birla Sun Life Mutual Fund reporting the highest rise in absolute terms.
Birla Sun Life MF's average AUM rose by 10% to Rs 67,200 crore in the June quarter, while SBI Mutual Fund's average AUM was up 12 pwer cent to Rs 47,200 crore.
Among AUM losers, Fidelity Mutual Fund reported the highest fall in absolute terms of 15% in its average AUM to Rs 7,400 crore, it said.
In terms of asset size, HDFC Mutual Fund maintained its top position by asset size at Rs 92,600 crore in the June quarter; its assets rose by 3.1%, and Reliance Mutual Fund followed with assets of Rs 80,700 crore (up 3.3%).
ICICI Prudential Mutual fund was third with Rs 73,000 crore assets, higher by 6.3%.
The share of the top five mutual funds' average assets stood at 54% in the June quarter, while share of the top 10 funds was 78%.
