Debt-fund inflows powered MFs : Crisil

While assets of money market funds or liquid funds grew by Rs 16,900 crore,ultra short term debt funds rose by Rs 6900 crore during the last quarter,it said.

Similarly,fixed maturity plans (FMPs) rose by Rs 2,900 crore and other debt-oriented funds increased by Rs 5,800 crore over the past quarter.

However,equity funds witnessed a decline during this period due to weak sentiments in the market.

“Equity funds witnessed a decline of Rs 5,300 crore in assets under management owing to weak sentiments prevailing in the asset class in the quarter gone by,” it said.

As per the report,29 out of 44 fund houses posted a rise in average assets under management in the last quarter with Birla Sun Life Mutual Fund registering the highest rise of Rs 6,100 crore or 10 percent compared to preceding quarter.

SBI Mutual Fund has witnessed the second highest rise of Rs 5,100 crore in the average assets under management during the last quarter.

Meanwhile,Fidelity Mutual Fund reported the highest fall in absolute terms of Rs 1,300 crore or 15 percent in its average assets under management to Rs 7,400 crore during this period.

The report also said that HDFC Mutual Fund retained its top position with an average assets under management of Rs 92,600 crore while Reliance Mutual maintained second position with average assets under management of Rs 80,700 crore.

Referring to money market funds,the report said,”Money market funds are key contributors to the assets under management rise that saw the highest gain in assets across categories,up 11.5 percent (or Rs 16,900 crore) to Rs 1.64 lakh crore in the June quarter,forming 24 percent of the industry assets.”

Similarly,Fixed Maturity Plans (FMPs) also saw a rise in assets for the eighth consecutive quarter.

“Fixed maturity plans (FMPs) continued to find favour among investors,with their average assets steadily increasing in the past eight quarters. In the latest quarter,category assets rose by 2.3 percent or Rs 2,900 crore to Rs 1.28 lakh crore,which is 18 percent of industry assets,” it said adding that high interest rates over the past two years have benefitted FMPs as investors are able to lock into higher yields.

However,equity mutual funds’ assets under management dipped by 2.6 percent to Rs 1.99 lakh crore due to weak sentiment in the market place.

The report also pointed out that assets under gold ETF crossed Rs 10,000 crore in the last quarter with a rise of 5.8 percent in average assets under management.