MFs' average AUM hits record high

Assets rise for the fifth quarter in a row

India's mutual fund industry's assets have grown for the fifth quarter in a row.

The average asset under management (AUM) for the quarter ended 30 June stood at Rs 8.38 lakh crore - a rise of 2.67% against the immediate past quarter.

Thanks to high inflows in industry's fixed income category that fund houses could mop up a record high assets. Though the growth was nominal, sector's top fund houses did better than industry's average.

For instance, UTI Mutual Fund grew its asset size with the fastest speed. Its assets jumped 7.56% to Rs 74,706 crore. ICICI Prudential MF was the second fastest in terms of asset growth among top players at 4.39%.

Country's largest fund house HDFC MF managed its top ranking and maintained assets well above Rs 1 lakh crore at Rs 1,04,977 crore while Reliance MF and Birla Sun Life MF grew 3.37% and 3.52%, respectively.

Deepak Chatterjee, managing director and CEO of SBI Mutual Fund, says, "There are large continuous inflows in the income side of the sector. It includes retail and high networth individuals, too. People are riding on the expectations of rate cuts."

Agrees Ajit Menon, executive vice president of DSP Black Rock Mutual Fund. "Fixed income category including bond funds have been attracting investors. Retail money too is getting into duration funds," says Menon.

Among the top ten players, IDFC MF was the largest gainer as its assets grew a whopping 18.4% during the quarter.