Debt funds boost mutual fund assets: CRISIL Fund Services
15 Sep 2009
The mutual fund industry's assets under management (AUM) reached a new peak at the end of Augustto reach Rs.7.57 trillion.
This translates into a moderate growth of 5 per cent over the previous month.
Among the frontline mutual fund categories, only the debt category, driven by the ultra short term debt segment, registered net inflows for the month while all the other categories saw net outflows.
On the returns front, equity funds out-performed on the back of a strong performance from midcap and small cap funds while the long-term debt funds saw negative returns due to rising yields.
''Ultra short term debt funds saw strong inflows in August, with banks parking their surplus funds in these schemes. At the same time, the new rule of no entry loads seems to have initially dulled theinflows into equity funds even though fund performances were good for the month.'', said Krishnan Sitaraman, director, CRISIL FundServices.
CRISIL's analysis of over 300 equity-oriented schemes revealed that more than 250 schemes gave better 1-month returns than that of the S&P CNX Nifty in August 2009.
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