Mutual Funds Increased By 2% to Rs.6.75 Trillion in Feb: Crisil

The Indian Mutual Fund Industry’s assets increased to Rs.6.75 trillion by the end of February from Rs.659 trillion in January, registering an increase of Rs.161 billion in February. According to the research from Crisil, a month-on-month 2% rise in mutual funds in February 2012 was due to the mark-to-market gains accumulated by equity funds and large inflows witnessed in money market funds.

The Foreign Institutional Investors (FII) have bought equities worth Rs.252 billion in February, which were the highest monthly net buying when compared to January. The equity funds category saw outflows of Rs.28 billion in January possibly due to redemption by investors aiming to lock gains. However, inflows into liquid funds were another factor for mutual fund assets which saw a net inflow of Rs.69 billion in February 2012.

The research analysis from AUM distribution and month-on-month fund flows shows that so far this year money-market funds, gold ETF funds and gilt funds witnessed total inflows of Rs.332 billion, Rs.1.67 billion and Rs.4.33 billion respectively.