India is tenth largest liquid fund market in the world

The Indian mutual fund industry ranks ahead of countries like Taiwan, South Africa, Canada, Sweden, Japan, Switzerland, Chile, Finland, Norway and Italy.

The Indian mutual fund industry ranks tenth in the world when it comes to the size of liquid fund assets under management, shows a latest study on the trend of worldwide mutual fund assets and flows published by Investment Company Institute (ICI).

The report shows that India has witnessed a growth of 61% or $13.6 billion AUM from September 2013 to reach AAUM of $25.9 billion in liquid funds as on September 2014, moving ahead of Taiwan, South Africa, Canada, Sweden, Japan, Switzerland, Chile, Finland, Norway and Italy.

However, AMFI data shows the size of the Indian liquid fund market much higher at Rs.1.9 lakh crore (approx. $32 billion) as on September 2014.

Crane Data’s analysis of ICI’s report shows that US has maintained its top position in the money market fund in the second quarter of FY 2014-15 with assets of $2,560 billion, a decline of $71 billion compared to last year. Though the US has witnessed a sharp decline in its assets under management (AUM) of liquid funds, it still managed to hold its first position globally.

France and Ireland continue to hold second and third position respectively in terms of liquid fund AUM.

China comes first among Asian countries and it is the sixth largest country in the world in terms of liquid fund AAUM. China’s mutual fund industry manages AUM of $257 billion as on September 2014. Over the past 12 months, its AUM grew by a massive 419% or up by $207 million. The report attributed this massive growth in liquid fund AAUM to the launch of China’s largest money fund called Yu’e Bao in June 2013. This fund has attracted inflows of over $90 billion. The report says, “Yu’e Bao will continue to grow because it is operated by Alipay.com, the payment service for Alibala, which just completed a $25 billion IPO.”

The report says, “Mutual fund assets worldwide increased 4% to $32000 billion, an all-time high, at the end of second quarter of 2014.”

Top Ten countries in terms of liquid fund AUM

Source: Crane data analysis of ICI’s report