Inflows higher at Rs 1 lakh crore in 2011-12

Despite being a tough year, the Indian mutual fund sector saw a net inflow of a little over Rs 1 lakh crore during 2011-12 (up to November 30, as compared to Rs 49,406 crore in the previous financial year, says the Survey.

This was largely led by inflow into private sector mutual funds which collected over 90 per cent of the money. Public sector fund houses including UTI Mutual Fund and other public sector mutual funds collected around Rs 8,300 crore.

Debt funds such as liquid, ultra-liquid and income funds saw good inflows because rise in the interest rates as well as safety attracted investors towards fixed instruments. This, along with higher funds pumped by investors into gold exchange traded funds, helped the mutual fund industry to make a comeback in positive territory.

Equity mutual funds, on the other hand, saw outflows because of consistent slide in the market (the Sensex lost over 20 per cent between March and December, 31). FY11 had been a year of redemption; from equity schemes alone, the industry had witnessed its highest-ever net outflow of about Rs 13,000 crore.

As on November 30, the market value of assets under management was 2.5 per cent up at Rs 6,81,655 crore against Rs 6,65,282 crore in 2010-11.