Mutual Fund assets rise 2.6 % in February

All but 13 out of the 38 fund houses post a surge in assets.

Investors’ comfort level in the equity market in recent times, has helped the domestic fund market garner more corpus in February compared to January.

According to data released by the Association of Mutual Funds in India (Amfi), the industry’s average asset under management (AAUM) increased by 2.64 per cent to Rs 7,81,711.52 crore in February against Rs 7,61,625.53 crore in the previous month.

Kenneth Andrade, head - investments, IDFC Mutual Fund, said, “There has been net inflows in all the categories this month.”

A fund manager, who did not wish to be named, said, “Investors are now reconciling with the market movement. In the coming months too, flow of money will remain positive as sentiments are good.”

Out of the 38 existing fund houses, 13 registered a drop in their AAUM. All top players, barring Reliance Mutual Fund whose AAUM dipped marginally by 1.28 per cent in February, gained on assets.

Assets of AIG Global Investment and Bharti AXA, were the worst hit recording a drop of over 12 per cent. DSP BlackRock, Escorts, Fidelity, HSBC Mutual Fund, ING Mutual Fund, LIC Mutual Fund, Mirae Asset, Morgan Stanley, SBI Mutual Fund and Sundaram BNP Paribas were among other fund houses that recorded a negative marking in terms of AAUM growth.

The players who made the most, include new entrant Axis Mutual Fund with a rise of 42 per cent in its AAUM, Taurus Mutual Fund (27 per cent), Shinsei Mutual Fund (14.7 per cent), Fortis Mutual Fund (14.4 per cent), Benchmark Mutual Fund (11.5 per cent) and Baroda Pioneer (10.5 per cent).

Rajiv Anand, CEO, Axis Mutual Fund, said, “In February we saw strong inflows in our money market and short term funds. On the equity side, the inflows were marginally positive.”

Last month, after a lull of almost five months, the equity segment witnessed net inflows airing optimism for equity schemes for which the market regulator Sebi had banned the entry load in August, last year.