MFs clock 26% growth in AUM in 2014

Major boost came during April-June quarter, following election results

The average asset under management (AUM) for the domestic mutual fund industry rose 26.1 per cent, most in five years, to Rs 11.05 lakh crore in 2014.

Gains were led by a rally in the equity market, which saw the benchmark indices climb 30 per cent, most since 2009. Investor flows in the debt segment too remained strong despite changes in taxation.

The mutual fund industry had begun 2014 with an AUM of Rs 8.76 lakh crore. Between, January and March, the rise in assets were a nominal 3.26 per cent.  Sharp growth in assets was seen after May, coinciding with the election victory of the Bhartiya Janta Party and its allies. Industry AUM jumped rose over nine per cent to Rs 9.87 lakh crore in the three months to June 2014.

Robust and sustained inflows in the equities segment, saw equity MF surge 70 per cent during the year. In 2014, the MF industry for the first time topped the total AUM of Rs 11 lakh crore. Top officials say the industry has the potential to touch set Rs 20 lakh crore in AUM over the next five years.

Currently, there are 43 mutual fund players in the industry with nearly 40 million investors’ folios.