MF industry’s assets crosses Rs. 10 lakh crore mark in May

Industry’s AUM went up to Rs. 10.11 lakh crore in May from Rs. 9.45 lakh crore in April due to inflows in liquid, income and equity funds.

Thanks to the roaring markets and inflows in equity as wells as liquid funds, the mutual fund industry’s assets under management scaled to a new high of Rs. 10.11 lakh crore in May, up 7% from Rs. 9.45 lakh crore in April, shows the latest AMFI data.

It was the third consecutive growth in AUM since March 2014.

Both key indices S&P BSE Sensex and CNX Nifty went up by 8% or 1800 points and 544 points respectively in May. While S&P BSE Sensex breached 24k mark in May, CNX Nifty closed at it’s the then all-time high of 7200 points in May.

Debt

Debt funds continued to remain the flavour of the season. Both income and liquid funds received close to Rs. 32,000 crore in May.

72 new fund offers, mostly FMPs, collectively mopped up Rs. 6,064 crore in May.

Equity

Equity funds saw a net inflow of Rs. 2,452 crore in May. Six new funds offers helped equity funds garner close to Rs. 1,000 crore.

While two open ended equity schemes - ICICI Prudential Dividend Yield Fund and Principal Index Fund - Midcap collected Rs.289 crore, a few close ended funds like Birla Sun Life Emerging Leader Fund, ICICI Prudential Value Fund Series 4, L&T Emerging Businesses Fund and Reliance Closed Ended Equity Fund mopped up Rs. 681 crore in May.

In fund of funds category, Franklin India Feeder - Franklin European Growth Fund and Religare Invesco Global Equity Income Fund collected Rs. 79 crore.

Gold

Due to gloomy outlook on gold, investors are continuously moving out of gold ETF. It is evident from the fact that the AUM of Gold ETFs fell to Rs. 7,781 crore in May from close to Rs. 11,000 crore levels some months back.

India Ratings & Research (Ind-Ra), a part of Fitch group, has predicted that 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.

Net inflow/outflow and AUM data

                                            Source: AMFI