Large MF houses see greater fund inflow: CRISIL

NEW DELHI: Large mutual fund houses have seen a greater inflow of funds in the month of February, amid the MF industry witnessing a rise in their assets under management for the third consecutive month, CRISIL says.

"Size appears to be a key factor determining choice, with large fund houses recording higher net inflows compared to the relatively small ones, a number of which have seen lower inflows, if not net outflows," the credit rating agency said.

In total, MF industry received net inflows of Rs 34,000 crore in February, against Rs 66,800 crore in January 2009.

Income funds received the largest share of net inflows (Rs 19,900 crore), followed by liquid funds (Rs 14,900 crore).

"With equity markets still volatile, and the economic climate uncertain, the average assets under management (AAUM) growth currently is driven mainly by debt and liquid funds. Corporate bond yields fell in February 2009 and in such an environment, debt funds held an edge with respect to returns," CRISIL FundServices Head Krishnan Sitaraman said.

The AUM of the country's MF industry regained the Rs 5,00,000-crore mark at the end of February, growing 8.8 per cent or by Rs 40,000 crore month-on-month, buoyed mainly by inflow in fixed income plans.