MF industry posts 12% growth in April assets

Mutual funds snapped the asset losing streak in April with the industry’s assets under management (AUM) growing by 11.8 per cent to Rs 5,51,299.95 crore.

Experts attribute this growth to the fact that institutions that had withdrawn in March had come back in April. A major part of the inflows has come into liquid funds and ultra short-term debt funds.

The sharpest rise in assets was witnessed by Baroda Pioneer AMC, which registered a growth of 66 per cent at Rs 1,882 crore.

Hemant Rustagi, chief executive officer of Wiseinvest Advisors Pvt Ltd, said: “In April, equity markets moved by 17.5 per cent, which has been reflected in the Average AUM. Liquid funds too have contributed to the rise.”

Reliance Mutual Fund, the largest fund house, saw its assets going up by 9 per cent to Rs 88,387.98 crore compared to its March assets of Rs 80,962.93 crore.

The second-largest fund house, HDFC mutual fund’s assets went up by 10 per cent to Rs 63,880.63 crore, followed by ICICI Pru and Birla Sunlife, which saw their assets surge by 10 per cent and 9 per cent respectively.

Mutual fund tracking agency Valuresearch Online’s Chief Executive Officer Dhirendra Kumar said, “Bond funds have received the money withdrawn in March. The value of bond has also gone up. All these things have had a cumulative impact, leading to the increase in the average assets of the mutual fund industry.”

While Tata mutual fund’s assets have increased by 14 per cent to Rs 19,438.81 crore compared to the March figure of Rs 17,029.87 crore, DBS Chola mutual fund has seen an increase of 57 per cent at Rs 1,611.4 crore.