MF asset base swells 7% to a record Rs 13.16-trn in Sep qtr

NEW DELHI: Buoyed by strong inflows in equities, the asset base of country's mutual fund industry surged 7 per cent to an all-time high of Rs 13.16 lakh crore in the July-September quarter of the current fiscal.

The country's 44 fund houses together had an average assets under management (AUM) of over Rs 12.28 lakh crore in the September quarter of 2014-15, the latest data of the Association of Mutual Funds in India ( AMFI) showed.

Industry experts said the quarterly rise in AUM is largely on account of inflows in equities. Besides, retail participation in equity schemes has risen significantly in recent months.

HDFC Mutual Fund (MF) has retained its numero uno position with an average AUM of Rs 1.71 lakh crore, up 3.53 cent, while ICICI Prudential MF's asset base grew 5.86 per cent to Rs 1.65 lakh crore.

The top league features Reliance MF (Rs 1.53 lakh crore), Birla Sunlife (Rs 1.33 lakh crore) and UTI MF (Rs 1.04 lakh crore) in terms of average AUM in the second quarter of 2015-16.

"Mutual funds' assets base rose Rs 87,239 crore, or 7.1 per cent, during the quarter primarily due to huge net inflow in equities. In addition, corporates have maintained their strong presence," an industry insider said.

Fund managers have purchased shares worth a staggering Rs 21,000 crore in the quarter under review even though overseas investors pulled out money from the stock market.

They made intensive buying when the Indian stock market crashed on account of global and domestic factors.

The sell-off by overseas investors in the Indian equity market has in fact handed an opportunity to MF managers.

Mutual funds collect money from investors and buy stocks, including IPOs (primary market), and bonds.