Investments into mutual funds (MFs) and companies' primary market mobilisations have both declined over the previous economic survey.
Fund houses raised Rs 53,783 crore in 2013-14, a 23.1 per cent drop from the previous year. Assets under management were Rs 8.25 lakh crore at the end of the year, up 17.6 per cent from Rs 7.01 lakh crore.
Equity market mobilisation was down 14.2 per cent in the same period. The size of initial public offerings (IPOs) declined, too, down 83.3 per cent to Rs 33 crore, on account of a higher proportion of small and medium enterprises listing on the exchanges. Debt mobilisation was up 149 per cent. Fund raising through private placement was down 23.5 per cent.
Equity fund-raising has been Rs 13,900 crore in the three months since the data in the survey, more than the Rs 13,269 crore in the whole of the previous year. Prabhat Awasthi, head of equities at Nomura Financial Advisory & Securities (India), said IPOs will rise once growth picks up in a meaningful way. "I think it will be at least one year," he said. MFs have mobilised an additional Rs 86,764 crore and average assets under management have increased to Rs 10.4 lakh crore, according to June data.
"Gross mobilisations have been very high since the data which has been shown in the economic survey. Retail investors who had been away are also coming back," said Sundeep Sikka, president and chief executive officer at Reliance Capital Asset Management and chairman of the Association of Mutual Funds in India.
Fund houses raised Rs 53,783 crore in 2013-14, a 23.1 per cent drop from the previous year. Assets under management were Rs 8.25 lakh crore at the end of the year, up 17.6 per cent from Rs 7.01 lakh crore.
Equity market mobilisation was down 14.2 per cent in the same period. The size of initial public offerings (IPOs) declined, too, down 83.3 per cent to Rs 33 crore, on account of a higher proportion of small and medium enterprises listing on the exchanges. Debt mobilisation was up 149 per cent. Fund raising through private placement was down 23.5 per cent.
Equity fund-raising has been Rs 13,900 crore in the three months since the data in the survey, more than the Rs 13,269 crore in the whole of the previous year. Prabhat Awasthi, head of equities at Nomura Financial Advisory & Securities (India), said IPOs will rise once growth picks up in a meaningful way. "I think it will be at least one year," he said. MFs have mobilised an additional Rs 86,764 crore and average assets under management have increased to Rs 10.4 lakh crore, according to June data.
"Gross mobilisations have been very high since the data which has been shown in the economic survey. Retail investors who had been away are also coming back," said Sundeep Sikka, president and chief executive officer at Reliance Capital Asset Management and chairman of the Association of Mutual Funds in India.