AUM of mutual funds touches Rs 7 lakh crore

Riding on the back of fresh inflows into various schemes, the MF industry’s AUM totalled Rs 7.20 lakh crore - a 24 per cent rise over the previous month, Crisil FundServices said in a report.

“Income and liquid funds saw strong inflows in July, with banks again parking money in mutual funds after withdrawals in June end to meet quarter-end capital adequacy related requirements,” Crisil FundServices Director Krishnan Sitaraman said.

Also, more than eight per cent rise in country’s stock market barometer Sensex, on the back of strong foreign fund flows and renewed investor confidence, during July, helped up the AUMs of all the fund houses. “The positive market momentum saw continued interest in equity funds,” Sitaraman said.

During July, FIIs invested over Rs 11,600 crore in Indian equities, while MFs bought Rs 1,825 crore shares, as per data available on the website of Sebi.

At the end of July, investors poured in funds worth Rs 1,23,679 crore in all the 36-fund houses of the country, recording the second biggest inflow in the fiscal 2009-10.

Change in trend
The MF industry has witnessed outflows worth Rs 83,937 crore in June after two consecutive months of inflows, which analysts believe was mainly on the back of heavy pull out by banks. Analysts feel that as increasing number of fund houses flooded the counter with new fund offers (NFOs) before the implementation of entry load ban from August 1, inflows increased substantially during the month.

During July, fixed income plans with assured returns saw a maximum investment of Rs 95,764 crore, followed by liquid or money market funds with higher liquidity and short maturity period which saw inflows worth Rs 24,698 crore. Besides, equity funds investing in stocks attracted investments worth Rs 4,232 crore.