MFs richer by Rs 30k-cr; UTI retains top slot
The total assets under management of the country's 30 mutual funds rose to over Rs 3,39,000 crore at the end of November.
By PTI |
MUMBAI: Coffers of domestic mutual funds have become even more fatter with boosters like robust investor response to new schemes and strong returns from the continuing record rally in stock markets adding about Rs 30,000 crore to their assets over the past month.
The total assets under management of the country's 30 mutual funds rose to over Rs 3,39,000 crore at the end of November, with a gain of about nine per cent over Rs 3,09,340 crore in the previous month, the data available with the Association of Mutual Funds in India (AMFI) shows.
UTI Mutual Fund retained its top position with total AUM of Rs 41,622.51 crore, followed by Prudential ICICI MF at the second position with AUM of Rs 35,232.16 crore.
Reliance MF came in at third position with an AUM of Rs 34,636.89 crore, followed by HDFC MF at fourth position with Rs 29,555.13 crore and Franklin Templeton at the fifth position (Rs 23,832.69 crore).
Besides strong returns from the equity market and robust cash collection by the new fund offers, stability in the bond market has also helped boost the overall fiscal health of the fund houses, the analysts believe.
Mutual funds tracking firm Value Research Online CEO Dhirendra Kumar told PTI : "The rise in AUMs basically reflect the stability in the bond market as people freely invest in them too, while equity markets are also attractive."
Besides, MFs have accumulated further cashpile by heavily selling in the stock market over the recent past. Data available with market regulator SEBI shows that MFs were net sellers to the tune of about Rs 25 crore in November, while they made net purchase of over Rs 6,300 crore in the month.
The domestic funds made gross sales of about Rs 12,700 crore in the equity market, while they made gross purchases of about Rs 13,300 crore in debt market during November.
The funds have diverted a significant chunk of their portfolio towards the debt market, while booking profits through sale of their shares in the equity market, which is currently trading at record high levels.
"Though domestic mutual funds are still cautious about investing in equity market and are sitting on reasonably large amounts of cash as they are too scared to invest in the soaring stock markets," Kumar added.
In contrast, the foreign funds are in an aggressive buying mode and their strong inflows in the stock markets corroborate the fact, Kumar said.
In November, FIIs have been net buyers in the equity market of Rs 9638.2 crore, while in debt to the amount of Rs 828 crore, the SEBI data shows.
The total assets under management of the country's 30 mutual funds rose to over Rs 3,39,000 crore at the end of November, with a gain of about nine per cent over Rs 3,09,340 crore in the previous month, the data available with the Association of Mutual Funds in India (AMFI) shows.
UTI Mutual Fund retained its top position with total AUM of Rs 41,622.51 crore, followed by Prudential ICICI MF at the second position with AUM of Rs 35,232.16 crore.
Reliance MF came in at third position with an AUM of Rs 34,636.89 crore, followed by HDFC MF at fourth position with Rs 29,555.13 crore and Franklin Templeton at the fifth position (Rs 23,832.69 crore).
Besides strong returns from the equity market and robust cash collection by the new fund offers, stability in the bond market has also helped boost the overall fiscal health of the fund houses, the analysts believe.
Mutual funds tracking firm Value Research Online CEO Dhirendra Kumar told PTI : "The rise in AUMs basically reflect the stability in the bond market as people freely invest in them too, while equity markets are also attractive."
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Besides, MFs have accumulated further cashpile by heavily selling in the stock market over the recent past. Data available with market regulator SEBI shows that MFs were net sellers to the tune of about Rs 25 crore in November, while they made net purchase of over Rs 6,300 crore in the month.
The domestic funds made gross sales of about Rs 12,700 crore in the equity market, while they made gross purchases of about Rs 13,300 crore in debt market during November.
The funds have diverted a significant chunk of their portfolio towards the debt market, while booking profits through sale of their shares in the equity market, which is currently trading at record high levels.
"Though domestic mutual funds are still cautious about investing in equity market and are sitting on reasonably large amounts of cash as they are too scared to invest in the soaring stock markets," Kumar added.
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In contrast, the foreign funds are in an aggressive buying mode and their strong inflows in the stock markets corroborate the fact, Kumar said.
In November, FIIs have been net buyers in the equity market of Rs 9638.2 crore, while in debt to the amount of Rs 828 crore, the SEBI data shows.
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The robust response to the new fund offers have also added to the mutual funds' overall wealth during the past one month.
"The increase in AUM also includes significant contribution from the NFOs, as they has been quite hot during the month," he added.
SBI MF's One India Fund was launched this month, the new fund offering period would be from November 24 to December 22, while Prudential ICICI AMC launched its Equity and Derivatives Fund on November 8, an open-ended equity scheme which aims to generate low volatility returns by investing in cash equities, equity derivatives and debt markets.
Among other NFOs, UTI, ABN Amro and Tata MFs have also come out with new schemes.
A study of all the bulk deals executed by mutual funds on the BSE and NSE in the month of November shows that IT major TCS, two-wheeler maker TVS Motor and Simplex Infrastructure were among the favourites for buying, while stocks like IDFC, OCL India, and Megasoft topped the selling list.
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