<p>The Indian mutual fund industry's assets increased to Rs 6.59 trillion in January, registering an increase of Rs 477 billion on a month-on-month basis.<br /><br /></p>.<p>According to Crisil Research, the 8 per cent rise last month over December was on higher inflows in money market funds and mark-to- market gains in equity funds.<br /><br />Money market funds witnessed inflows of Rs 264 billion in January, taking the total assets under this category to Rs 1.48 trillion compared with Rs 1.21 trillion in December.<br /><br />Meanwhile, as a result of the uptick in the equity market, assets under equity funds surged by Rs 184 billion or 11 per cent to Rs 1.80 trillion.<br /><br />The equity market represented by the benchmark S&P CNX Nifty rose around 12 per cent in January spurred by positive global and domestic cues, the first monthly gain for the market since October 2011.<br /><br />Gilt funds recorded highest inflows since September 2010 of over Rs 5.21 billion in January, the second consecutive month of inflows.<br /><br />"Sentiments for gilt funds have risen on views of peaking of interest rates and easing of monetary policy going forward. This is expected to benefit long-term debt funds including gilt funds," the report said.<br /><br />Meanwhile, Income funds (including ultra short-term debt funds) saw outflows of Rs 29 billion in January, the third consecutive month of outflows, primarily because, investors preferred "long-term debt avenues on views of peaking of interest rates in the domestic economy" the report said.<br /><br />Fixed Maturity Plans (FMPs) continued to garner majority of the new fund offers (NFOs) during the month.<br /><br />In January, 49 FMPs were launched garnering Rs 78.44 billion compared with three other NFOs launched, which in total garnered only Rs 6.57 billion.<br /><br />An analysis of month-on-month mutual fund flows and AUM distribution, shows that Money Market Funds, Gilt Funds and Gold ETF funds were the three categories which witnessed a net inflow of Rs 264.29 billion, Rs 5.21 billion and Rs 0.82 billion respectively.<br /><br />In January, income funds witnessed a net outflow of Rs 29.26 billion, followed by equity funds which saw outflow of Rs 3.80 billion and, balanced funds - Rs 1.01 billion, Crisil said.</p>
<p>The Indian mutual fund industry's assets increased to Rs 6.59 trillion in January, registering an increase of Rs 477 billion on a month-on-month basis.<br /><br /></p>.<p>According to Crisil Research, the 8 per cent rise last month over December was on higher inflows in money market funds and mark-to- market gains in equity funds.<br /><br />Money market funds witnessed inflows of Rs 264 billion in January, taking the total assets under this category to Rs 1.48 trillion compared with Rs 1.21 trillion in December.<br /><br />Meanwhile, as a result of the uptick in the equity market, assets under equity funds surged by Rs 184 billion or 11 per cent to Rs 1.80 trillion.<br /><br />The equity market represented by the benchmark S&P CNX Nifty rose around 12 per cent in January spurred by positive global and domestic cues, the first monthly gain for the market since October 2011.<br /><br />Gilt funds recorded highest inflows since September 2010 of over Rs 5.21 billion in January, the second consecutive month of inflows.<br /><br />"Sentiments for gilt funds have risen on views of peaking of interest rates and easing of monetary policy going forward. This is expected to benefit long-term debt funds including gilt funds," the report said.<br /><br />Meanwhile, Income funds (including ultra short-term debt funds) saw outflows of Rs 29 billion in January, the third consecutive month of outflows, primarily because, investors preferred "long-term debt avenues on views of peaking of interest rates in the domestic economy" the report said.<br /><br />Fixed Maturity Plans (FMPs) continued to garner majority of the new fund offers (NFOs) during the month.<br /><br />In January, 49 FMPs were launched garnering Rs 78.44 billion compared with three other NFOs launched, which in total garnered only Rs 6.57 billion.<br /><br />An analysis of month-on-month mutual fund flows and AUM distribution, shows that Money Market Funds, Gilt Funds and Gold ETF funds were the three categories which witnessed a net inflow of Rs 264.29 billion, Rs 5.21 billion and Rs 0.82 billion respectively.<br /><br />In January, income funds witnessed a net outflow of Rs 29.26 billion, followed by equity funds which saw outflow of Rs 3.80 billion and, balanced funds - Rs 1.01 billion, Crisil said.</p>