The average assets under management (AUMs) of mutual funds witnessed a 14.6% rise to touch a record R9.45 lakh crore in April on the back of a spurt in inflows into liquid funds, rating agency Crisil said on Friday.
Assets under equity funds gained for the third consecutive month, tracking the uptick in the equity indices, it added. “The mutual fund industry’s AUM rose to a record R9.45 lakh crore, up 14.6%... The spurt in the AUM, which is the largest absolute gain in the last one year, was primarily due to inflows into liquid funds,” the rating agency said.
As per the agency, liquid funds attracted inflows of R1.24 lakh crore, which is the biggest in three years, as corporates and banks ploughed the surplus money back into the funds that were withdrawn in March due to advance tax payout and fiscal end requirement.
The liquid funds' assets rose 94.6% to touch R2.59 lakh crore by April-end.
However, income funds registered outflows, with assets under this category touching R4.58 lakh crore, mainly due to outflows from closed-ended and interval funds. Gilt funds saw outflow for the fifth consecutive month with AUMs falling to R5,895 crore in April.
Meanwhile, investors continued to exit gold exchange-traded funds (ETFs) for the 11th straight month with consolidated outflows amounting to R2,400 crore till April.
“For the latest month, assets of gold ETFs fell by 1.7% to R8,527 crore amid outflows of R146 crore in April. Of late, the popularity of the category has waned due to a subdued performance by the underlying assets,” it said.
However, equity fund AUMs gained for the third month in a row with April witnessing a gain of 0.6% or R1,139 crore to R1.92 lakh crore.
“The gains were led primarily by mark to market gains in the broad market,” it said. Similarly, other ETFs and global fund of funds report outflows during the month. “Other ETFs saw record outflows of R1,213 crore and assets declined 18.20% to R3,700 crore in April,” the rating agency said.