Mutual fund AUM crosses Rs 7.5 trillion mark: Crisil report

The mutual fund industry has experienced growth of 3% in Assets Under Management (AUM) to Rs 7.53 trillion in August 2012. This rise is contributed by the inflows of Rs 198 billion into liquid and income funds. However, these inflows are less, compared to Rs 385 billion in July 2012.

According to a leading credit rating agency – Crisil, this is the first time that the mutual fund industry’s AUM crossed Rs 7.5 trillion since April 2011.

Among all the mutual fund categories, liquid funds saw the highest inflows of Rs 148 billion in a month. The assets of this category surged by 9% to Rs 1.93 trillion. Improvement in the liquidity in the market, has resulted in inflows into the category.

The latest report released by Reserve Bank of India, says that, investments in mutual funds rose from Rs 481 billion as on July 27 to Rs 510 billion as on August 24.

According to Crisil, continuation of inflows is due to the New Fund Offers (NFOs) of Fixed Maturity Plans (FMPs) as well as dynamic bonds, short-term income funds and ultra short-term debt funds.