Equity-oriented funds were the strongest performers across all fund categories in 2009, said a report released by credit rating agency Crisil.
These funds registered a one-year return of over 80 per cent, driven by the sharp up-tick in equity markets with mid- and small-cap stocks outperforming large caps.
The year also witnessed a near two-fold rise in the assets under management (AUM) of the mutual fund (MF) industry. However, December was a dampener for the industry, which suffered the highest monthly net outflows due to withdrawals by companies and banks.
The Crisil Fund~eX (which tracks diversified equity funds) was up 81 per cent in 2009, reflecting the highest growth among all MF categories. This was better than the 76 per cent growth registered by the S&P CNX Nifty index.
The performance of diversified equity funds was supported by strong performance by the mid- and small-cap stocks with the respective indices showing growth in excess of 100 per cent in 2009. Balanced funds also rode the rising equity markets with the Crisil Fund~bX (which tracks balanced funds) returning 70 per cent in 2009. Most debt categories gave single-digit returns with gilt funds giving negative returns on account of rising interest rates witnessed in the year, especially in the second half.
Overall, 2009 was positive for the MF industry on the AUM front, with average AUM almost doubling to Rs 7.96 lakh crore in December 2009 from Rs 4.21 lakh crore a year ago. Month-end AUM on the other hand saw a 60 per cent growth on a year-on-year basis.
Krishnan Sitaraman, director at Crisil FundServices, said, “This growth was primarily due to high liquidity in the system, which saw large inflows into liquid and ultra short-term debt schemes.”
The buoyant equity markets, which grew sharply in 2009, gave a similar boost to equity fund AUM. While AUM of debt-oriented funds saw a 55 per cent growth over the year, equity fund AUM saw a much higher 77 per cent growth mainly due to mark-to-market gains.”
At the same time, December proved to be a dampener for the MF industry, as it witnessed the highest ever monthly net outflows of Rs 1.57 lakh crore. Most of the net outflow was from ultra-short debt schemes and liquid funds. Accordingly, average AUM fell 1.6 per cent or Rs 13,000 crore to Rs 7.96 trillion in December. Month-end AUM witnessed a steeper fall of 19 per cent to Rs 6.7 lakh crore.
The fall in AUM in December was on expected lines due to quarter-end withdrawals by companies and banks from ultra-short debt and liquid schemes. A similar trend is also seen in March and September. Companies withdraw their investments to meet advance tax payments, while banks prune mutual fund investments to meet their quarter-end balance sheet requirements on capital adequacy. However, equity-oriented funds witnessed a rise in AUM of Rs 5,600 crore on mark-to-market gains.
Source: http://www.business-standard.com/india/news/equity-funds-cometop-in-2009/382587/
These funds registered a one-year return of over 80 per cent, driven by the sharp up-tick in equity markets with mid- and small-cap stocks outperforming large caps.
The year also witnessed a near two-fold rise in the assets under management (AUM) of the mutual fund (MF) industry. However, December was a dampener for the industry, which suffered the highest monthly net outflows due to withdrawals by companies and banks.
The Crisil Fund~eX (which tracks diversified equity funds) was up 81 per cent in 2009, reflecting the highest growth among all MF categories. This was better than the 76 per cent growth registered by the S&P CNX Nifty index.
The performance of diversified equity funds was supported by strong performance by the mid- and small-cap stocks with the respective indices showing growth in excess of 100 per cent in 2009. Balanced funds also rode the rising equity markets with the Crisil Fund~bX (which tracks balanced funds) returning 70 per cent in 2009. Most debt categories gave single-digit returns with gilt funds giving negative returns on account of rising interest rates witnessed in the year, especially in the second half.
Overall, 2009 was positive for the MF industry on the AUM front, with average AUM almost doubling to Rs 7.96 lakh crore in December 2009 from Rs 4.21 lakh crore a year ago. Month-end AUM on the other hand saw a 60 per cent growth on a year-on-year basis.
Krishnan Sitaraman, director at Crisil FundServices, said, “This growth was primarily due to high liquidity in the system, which saw large inflows into liquid and ultra short-term debt schemes.”
The buoyant equity markets, which grew sharply in 2009, gave a similar boost to equity fund AUM. While AUM of debt-oriented funds saw a 55 per cent growth over the year, equity fund AUM saw a much higher 77 per cent growth mainly due to mark-to-market gains.”
At the same time, December proved to be a dampener for the MF industry, as it witnessed the highest ever monthly net outflows of Rs 1.57 lakh crore. Most of the net outflow was from ultra-short debt schemes and liquid funds. Accordingly, average AUM fell 1.6 per cent or Rs 13,000 crore to Rs 7.96 trillion in December. Month-end AUM witnessed a steeper fall of 19 per cent to Rs 6.7 lakh crore.
The fall in AUM in December was on expected lines due to quarter-end withdrawals by companies and banks from ultra-short debt and liquid schemes. A similar trend is also seen in March and September. Companies withdraw their investments to meet advance tax payments, while banks prune mutual fund investments to meet their quarter-end balance sheet requirements on capital adequacy. However, equity-oriented funds witnessed a rise in AUM of Rs 5,600 crore on mark-to-market gains.
Source: http://www.business-standard.com/india/news/equity-funds-cometop-in-2009/382587/
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