Thursday, February 10, 2011

Strong inflows into debt funds lift MFs’ asset base 10% in January

Strong inflows into debt funds helped Indian mutual funds clock a growth of 10% in their asset base in January. The fund industry added over Rs 64,000 crore during the month, taking its overall asset base to Rs 6,91,080 crore, according to data released by the Association of Mutual Funds in India (Amfi).

Almost all fund categories witnessed inflows during the month. Liquid funds and income funds netted about Rs 73,000 crore and Rs 10,000 crore in January, making them the largest contributors to industry asset base. Equity funds saw a net inflow of Rs 881 crore.

However, the 10% fall in the market in January caused a shrinkage in the asset base of equity funds. At the end of January this year, 39 fund houses had over Rs 1,65,000 crore in equity assets.

“Money is trickling in to equity funds,” said Vikaas Sachdeva, CEO, Edelweiss Mutual Fund. “We are seeing a gradual rise in the number of SIPs. Debt funds are seeing an increase in allocations because of higher yields,” Mr Sachdeva said. The sliding market in January presented a great opportunity for mutual funds to buy stocks at lower levels. Funds net bought shares worth Rs 864 crore and debt papers worth Rs 37,427 crore in January, according to figures released by market regulator Sebi.

“Significant sums of money have flown into fixed maturity plans and ultra-short term funds in January,” said Vijai Mantri, CEO, Pramerica Asset Management.

Corporate treasuries, banks and even retail investors are investing in medium-term debt funds, thanks to rising yields. Rates on one-year paper are currently hovering at 10.25-10.50%. The yield on three-five year papers average 9.5-9.75%. Five-ten-year government papers earn anywhere between 8% and 8.5% as yields. A mediumterm debt portfolio will earn the investor about 30% return in three years time.

“We expect the industry to see more inflows in the months to come,” Mr Mantri said. Balanced funds, equity-linked savings schemes and gold ETFs have logged inflows worth Rs 251 crore, Rs 245 crore and Rs 125 crore, respectively, in January.

Source: http://economictimes.indiatimes.com/personal-finance/mutual-funds/mf-news/strong-inflows-into-debt-funds-lift-mfs-asset-base-10-in-january/articleshow/7457543.cms

No comments:

Just click away from joining most active Mutual Fund India google group

Google Groups
Subscribe to Mutual Fund india
Email:
Visit this group

Aggrasive Portfolio

  • Principal Emerging Bluechip fund (Stock picker Fund) 11%
  • Reliance Growth Fund (Stock Picker Fund) 11%
  • IDFC Premier Equity Fund (Stock picker Fund) (STP) 11%
  • HDFC Equity Fund (Mid cap Fund) 11%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 10%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund) 8%
  • Fidelity Special Situation Fund (Stock picker Fund) 8%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Moderate Portfolio

  • HDFC TOP 200 Fund (Large Cap Fund) 11%
  • Principal Large Cap Fund (Largecap Equity Fund) 10%
  • Reliance Vision Fund (Large Cap Fund) 10%
  • IDFC Imperial Equity Fund (Large Cap Fund) 10%
  • Reliance Regular Saving Fund (Stock Picker Fund) 10%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 9%
  • HDFC Prudence Fund (Balance Fund) 9%
  • ICICI Prudential Dynamic Plan (Dynamic Fund) 9%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Conservative Portfolio

  • ICICI Prudential Index Fund (Index Fund) 16%
  • HDFC Prudence Fund (Balance Fund) 16%
  • Reliance Regular Savings Fund - Balanced Option (Balance Fund) 16%
  • Principal Monthly Income Plan (MIP Fund) 16%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Principal Large Cap Fund (Largecap Equity Fund) 8%
  • JM Arbitrage Advantage Fund (Arbitrage Fund) 16%
  • IDFC Savings Advantage Fund (Liquid Fund) 14%

Best SIP Fund For 10 Years

  • IDFC Premier Equity Fund (Stock Picker Fund)
  • Principal Emerging Bluechip Fund (Stock Picker Fund)
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund)
  • JM Emerging Leader Fund (Multicap Fund)
  • Reliance Regular Saving Scheme (Equity Stock Picker)
  • Biral Mid cap Fund (Mid cap Fund)
  • Fidility Special Situation Fund (Stock Picker)
  • DSP Gold Fund (Equity oriented Gold Sector Fund)