Mumbai: The assets under management of the mutual fund industry witnessed a marginal increase of 2.43 per cent to Rs. 6,65,286 crore (as per AMFI monthly data) in the month of November 2010 compared to a decline to of 1.60 per cent in the month of October. This increase in AUM was due to substantial inflows in income, liquid and guilt funds.
Mutual fund industry’s total sale from new schemes launched during the month of November was Rs. 11,259 crore, a 19 per cent increase from the previous month. The industry launched 42 new income schemes (close ended) mobilizing Rs. 11,187 crore. No collection was shown in new equity schemes as the schemes launched by the fund houses in November spilled into December. Other new schemes that were launched are gold ETFs fund pooling in Rs. 68 crore and the solitary overseas fund collected Rs. 4 crore.
“The Coal India IPO money came back in the mid November. A lot of corporate money was released in mutual funds. Secondly there has been a lot of interest in FMPs,” says Mahhendra Kumar Jajoo, Executive Director, Fixed Income, Pramerica Mutual Fund.
Equity schemes only saw Rs. 41 crore net outflows in the month of November. Industry experts attribute this fall in redemptions to the quantitative easing adopted in US and good GDP numbers. “Indian GDP growth numbers were good, so people were feeling a little bit positive about equity markets. Quantitative easing was announced in US, so because of that there was an expectation of lot of inflows in equity markets,” adds Mr Jajoo.
