MF assets reach all-time high of Rs. 8.68 trillion in May - SMC Global

The mutual fund industry's month-end assets under management (AUM) rose over 5% month on month or Rs 429 bn to an all-time high of Rs 8.68 trillion in May as per the monthly numbers released by the Association of Mutual Funds in India (AMFI). The previous high of Rs 8.26 trillion was in January 2013. AUM gains in May were led by inflows into income and liquid funds.

Income funds' (includes long-term debt funds, short-term debt funds, fixed maturity plans and ultra short-term debt funds) assets rose by nearly Rs. 250 bn or 6% to a 3-year high of Rs. 4.47 trillion, led by inflows of nearly Rs. 210 bn plus mark to market gains. Most of the inflows were into short term and ultra short term debt funds as banks and corporates re-invested their funds in these short maturity categories.

Equity funds saw outflows of Rs. 34 bn in May compared to around Rs. 3 bn in April, the highest for the category in eight months. The category has witnessed outflows in 11 months out of the past 12 months as investors continued to book profits. In the latest month, the equity market represented by the CNX Nifty gained around 1% amid mixed domestic and global cues. On year to date basis (five months) too, the index has returned 1.37%. Category assets declined by Rs. 32 bn or 1.8% in May to Rs 1.75 trillion.

Source : Equity Bulls

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