MF assets surge 33% to Rs 1,99,248 cr

70% of the growth came from equity-related funds, while the rest came from debt funds.

Assets under management (Aum) of the mutual fund industry rose by Rs 49,648 crore in the first nine months of the financial year 2006, thanks to buoyant equity markets. Almost 70 per cent of the Aum growth came through equity-related funds and the rest was contributed by debt funds.

Aum topped Rs 1,99,248 crore as on December 31, 2005, up 33.18 per cent from Rs 1,49,600 crore on March 31 last year.

Equity-oriented funds "" growth funds, balanced funds and equity-linked savings schemes (ELSS) "" increased their share in Aum, while debt funds (income funds, gilt funds and liquid funds) lost ground.

Equity funds benefited from a surge in stock prices, with 38.4 per cent of the rise in Aum coming from an increase in the market value of the equity holding. Growth funds clocked Rs 11,496 crore gains from higher valuation, while ELSS witnessed value growth of Rs 1,521 crore.

The market value of income funds rose by Rs 6,242 crore and that of liquid funds by Rs 12,916 crore. Income funds marginally benefited from a rise in the valuation of equities. A stable bond market also contributed to the growth of this segment, liquid funds gained from the stability in interest rates in 2005-06.

The new issue market was more encouraging for equity funds with the mutual fund industry mobilising Rs 27,059 crore in growth funds. And while income funds, mostly with 20 per cent exposure in shares, mopped up Rs 17,511 crore, liquid funds collected Rs 1,176 crore from the new issue market.

There was a mad scramble to redeem income, gilt and liquid funds, while growth and ELSS funds witnessed profit booking. In the first nine months of the year, income funds mobilised Rs 2,13,032 crore through new and existing schemes, but outflows were marginally higher at Rs 2,13,976 crore.

Liquid funds, on the other hand, saw cumulative inflows to the tune of Rs 8,86,722 crore and outflows of Rs 8,88,995 crore. As for growth fund, inflows were Rs 75,551 crore and outflows Rs 56,660 crore.

Growth funds increased their Aum by 82.7 per cent and its share in the total Aum moved up to 33.70 per cent from 24.57 per cent. In contrast, income funds posted a 11.13 per cent rise in Aum, while its share in the overall Aum declined from 31.82 per cent to 26.55 per cent. Liquid funds showed 19.68 per cent growth in Aum and its share in the total Aum pie dropped from 36.14 per cent to 32.48 per cent.