Mutual Funds assets cross Rs 13 trillion in Q3 2015

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The domestic Mutual Fund industry’s AUM (asset under management) has surged by around seven percent due to the help of the buoyant investor sentiments. This way, the segment has crossed the Rs 13 trillion mark during the third quarter of the year that ended in September 2015. This information was revealed by the rating agency Crisil.

The asset under management segment is driven by the increase in equity and the debut oriented funds. This has added assets worth Rs 872.39 billion with an average asset of Rs 13.16 trillion during the third quarter of this year.

This increase in the AUM is the eighth consecutive quarter rise in the Mutual Fund industry. Crisil stated that the domestic mutual fund industry has crossed another milestone following the rise of its average AUM that crossed Rs 13 million this September.

It noted that the industry recorded the highest absolute gain in the assets since the AMFI (Association of Mutual Funds in India) started declaring the average quarterly AUM data five years back. A robust inflow of Rs 274.56 billion of equity mutual funds’ AUM marked a recorded with the highest value of 4.36 trillion for the quarter.

As per Crisil, the investors are buoyant on the equity funds despite the ongoing volatility. The debt funds gain 9.79 percent with the long term funds such as gift funds gaining hopes that the RBI will ease the rates. However, the short term funds also showed a steady growth.

The report stated that the central bank reduced the key repo rate by around 50 basis points or bps that is to 6.75 percent in the recent quarter. This rate cut follows the 25 bps cut made earlier.

The further gains were limited by the outflows of Rs 264.53 billion in September 2015 on the risk aversion that trimmed the total flows to Rs 70.65 billion during the period.

On the other hand, the change in the debt funds’ tax structure remained the same and it impacted the fixed maturity plans or FMPs. The AUM of this category dropped for the fifth consecutive quarter by an amount of Rs 18.50 billion to Rs 1.14 trillion.

 

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