MF industry’s assets under management reach all-time high in April

Industry’s AUM went up 15 percent from Rs. 8.25 lakh crore in March to Rs. 9.45 lakh crore in April due to inflows in liquid funds.

Thanks to inflows in liquid funds, mutual fund industry’s assets under management reached an all-time-high of Rs. 9.45 lakh crore in April.

Mutual fund industry’s assets under management went up to Rs. 9.45 lakh crore in April, up 15 percent from Rs. 8.25 lakh crore in March. Liquid funds received Rs. 1.12 lakh crore in April. However, except liquid, equity and IDFs,  all other categories saw net outflows.

Typically, corporates and banks redeem money from liquid funds during quarter end. In March, Rs. 1.17 lakh crore went out from liquid funds which made its way back in the industry in April.   

Equity

There was some good news on the equity funds front as well. Gross redemptions slowed down to Rs. 5,219 crore which helped the industry receive net inflows of Rs. 208 crore in equity funds.

Gold

From close to Rs. 11,000 crore levels some months back, the AUM of Gold ETFs fell to Rs. 8,527 crore in April. Due to grim outlook on gold, investors are continuously moving out from Gold ETFs which is evident by the closure of folios in the category.

According to India Ratings & Research (Ind-Ra), a part of Fitch group, gold prices are further expected to decline in FY15 in the range of Rs. 25,500 to Rs. 27,500/10 g. It expects gold prices to fall due to the gradual winding up of unconventional monetary policy (UMP) in US which would cause interest rates to go up and consequently discourage investments in gold.

New launches

There were 78 new fund offers, most of them being FMPs, which collectively mopped up Rs. 10,508 crore in April.

Franklin India Banking & PSU Debt Fund and Motilal Oswal MOSt Focused Multicap 35 Fund collected Rs. 91 crore and Rs. 64 crore respectively. Among ETFs, Reliance - R*Shares Consumption Fund and R*Shares Dividend Opportunities Fund collected Rs. 31 crore.