The mutual fund industry hits another milestone, crossing Rs 8 lakh crore in assets under management for the month of November reports CNBC-T18’s Mrinalini Krishna.
The average asset under management currently stands at Rs 8.07 lakh crore which is about 6% jump from October last year. It’s been a good year for the industry from Rs 6 lakh crore in May to Rs 7 lakh crore in August and now 8 lakh crore in November.
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What is also interesting to see is that HDFC Mutual Fund, which is a second largest player have join the bandwagon of Reliance Mutual Fund crossing the Rs 1 lakh crore barrier of assets under management.
Also the other top five mutual fund players have had reasonable gains in their assets under management. While the Sensex was up about 6% through the month of November, experts feel that is not one of the key drivers of this growth in assets under management and there are many other factors.
Milind Barve, Managing Director at HDFC AMC says equity markets, the equity indices have grown by 6% but the industry has roughly about 25% of assets in equity or equity oriented fund products. “In that aspect impact on equity oriented MF could be correlated to market movement but the rest of the movement has essentially come from more money flowing into money market or money market type of products which is predominantly in the fixed income group.”
So while the equity markets are up they are not driving the AUM growth, so you can see that fixed income products are getting more of the inflows.
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