The mutual fund industry has registered an increase of 29.4 per cent in the market value of its assets under management (AUM) during the first three quarters of the current financial year. According to the Economic Survey, the market value of the sector's AUM stood at Rs 7,59,995 crore as on December 31, 2012 against Rs 5,87,217 crore as on March 31, 2012.
Mutual Fund houses have been reeling under redemption pressure for almost two years, from equity, in particular. However, during the April-December period of this financial year, fund industry managed to mobilise Rs 1,20,269 crore. A sharp rise in the stock indices during CY2012 of around 25 per cent was one of the factors which helped increase the market value of the equity assets, which contributed in the rise of total AUM. Though redemptions from equity schemes continued unabated, reaching one of the highest levels so far in FY13.
Besides, consistent preference for investment in debt-related funds, gilt funds and gold exchange-traded funds helped the sector garner more assets during the year. For instance, during a year when equity segment witnessed Rs 15,192 crore as net outflow, income funds saw fresh inflows of Rs 87,133 crore, while gilt funds pulled in Rs 3,698 crore and gold exchange-traded-funds managed inflows of Rs 1,509 crore till January according to industry body, the Association of Mutual Funds in India.