MF assets double to Rs.8 trillion in a year

Mutual fund average assets under management (AuM) doubled to over Rs8 trillion in November 2009 compared to a year ago when they had dropped to Rs4 trillion levels following the onset of the global credit and liquidity crisis.

Average AuM rose by around 6 per cent or Rs452 billon in November to Rs8.09 trillion, a fresh all time high, from Rs7.63 trillion in October while month-end AuM touched Rs8.22 trillion.

All asset classes represented by CRISIL's mutual fund indices showed positive returns in November after a weak October.

''Mutual fund assets grew primarily on account of continuous inflows into Ultra short term debt funds. Mark to market gains in equity funds also contributed to asset gains to some extent. Banks were among key investors and held a fifth of the industry AUM.'' said Krishnan Sitaraman, director - CRISIL FundServices.

While funds attracted almost half a trillion in net inflows during November, the corresponding year to date numbers crossed the Rs3-trillion mark mainly on surplus liquidity conditions prevailing in the economy.

Liquid funds too saw net inflows of Rs86 billion after a span of three months.