The Indian mutual fund industry recorded a four percent growth in quarterly average assets under management (AUM) for the first time in the past four quarters, according to a study by Crisil.
The AUM rose by 4 percent to Rs 6.92 lakh crore in the April-June 2012 from Rs 6.65 lakh crore in the previous quarter (excluding domestic fund of funds), as per the latest numbers announced by the Association of Mutual Funds in India (AMFI).
Debt-oriented funds were the key contributors to the rise. 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. 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.
The increase in the AUM is mostly due to the gain reported in debt-oriented funds as they were up 11.5 percent to Rs 1.64 trillion in the June quarter, forming 24 percent of the industry assets.
This increase could have been prompted due to the slight easing in liquidity pressures in the domestic financial system.
HDFC Mutual Fund continued to retains its top position by asset size at Rs 926 billion. Its asset rose by Rs 2,700 crore or 3.1 percent. Reliance Mutual fund came in second place followed by ICICI Prudential Mutual Fund.