Assets under management (AUMs) of the Indian mutual fund industry for May’09 have set the record by piercing the Rs 6 lakh crore mark once again. This level had been last topped in May 2008.
Average assets under management of 34 out of 35 mutual funds rose 16% to Rs 6,37,609 crore in May. AIG is the only fund house yet to disclose its AUM.
Reliance Mutual Fund, the country’s number one fund house by assets, has seen its AAUM cross the Rs 1 lakh crore mark for the first time siunce May 2008. At Rs 1,02,730 crores, its AAUM has risen 16% over the previous month.
Sundeep Sikka, CEO, Reliance Capital Asset Management, attributes this rise to an increase in valuations(due to the recent stock market rally) as well to an influx of fresh money into the schemes. “We have witnessed an increase in activity by retail investors and have been adding new customers in the last few months.”
Average assets under management of 34 out of 35 mutual funds rose 16% to Rs 6,37,609 crore in May. AIG is the only fund house yet to disclose its AUM.
Reliance Mutual Fund, the country’s number one fund house by assets, has seen its AAUM cross the Rs 1 lakh crore mark for the first time siunce May 2008. At Rs 1,02,730 crores, its AAUM has risen 16% over the previous month.
Sundeep Sikka, CEO, Reliance Capital Asset Management, attributes this rise to an increase in valuations(due to the recent stock market rally) as well to an influx of fresh money into the schemes. “We have witnessed an increase in activity by retail investors and have been adding new customers in the last few months.”
Naval Bir Kumar, MD, IDFC Asset Management too said that equity schemes were beginning to see fresh inflows.
“Investors are coming back to equities, but not in hordes. They are being selective and past performance has become a threshold in selecting investments. However there has been a change in the investment pattern with the number of investors opting for lump-sum investment surpassing those opting for the SIP route”, he stated. His fund house has seen its assets surge by about 26% to over Rs 20,000 crore since April ’09.
While fresh money is streaming into equities, it is the income and debt category that has once again been the torch-bearer for the overall rise in assets. “As long as the market is flush with liquidity, liquid and short term debt funds shall continue to receive a good chunk of that money”, added Mr Kumar.
“Investors are coming back to equities, but not in hordes. They are being selective and past performance has become a threshold in selecting investments. However there has been a change in the investment pattern with the number of investors opting for lump-sum investment surpassing those opting for the SIP route”, he stated. His fund house has seen its assets surge by about 26% to over Rs 20,000 crore since April ’09.
While fresh money is streaming into equities, it is the income and debt category that has once again been the torch-bearer for the overall rise in assets. “As long as the market is flush with liquidity, liquid and short term debt funds shall continue to receive a good chunk of that money”, added Mr Kumar.
Posts
No comments:
Post a Comment