The assets under management (AUM) of the mutual fund industry jumped 18 per cent at Rs 8.26 lakh crore in April year-on-year on the back of inflows into the money market and income funds, according to a report by Crisil Research.
"The month-on-month percentage gain in assets is the highest in the past two years and was led by inflows into the money market and income funds," the report said.
According to the report, while liquid funds saw inflows of Rs 85,700 crore, accounting for 80 per cent of total inflows in April, assets in income funds rose to 35 months high during this period.
"Income funds', which include long-term debt funds, short-term debt funds, fixed maturity plans and ultra-short-term debt funds, assets rose by Rs 26,300 crore to a 35-month high of Rs 4.22 lakh crore, led by inflows of around Rs 20,200 crore and mark-to-market gains," it said.
Referring to assets under gilt funds, it said assets under this category posted a rise of 14 per cent to Rs 9,200 crore.
"The rise in assets was primarily due to inflows of around Rs 1,000 crore in the month amid anticipation of easing of interest rates," it further said.
On the assets under equity funds category, the release said that despite witnessing outflows of nearly Rs 300 crore, assets under equity funds rose by 3.6 per cent to Rs 1.79 lakh crore in April on the back of mark-to-market gains.
Meanwhile, gold exchange traded funds posted a fall of around 9 per cent to Rs 10,600 crore in the month led by outflows.
"Gold price represented by the Crisil Gold Index fell 8 per cent in the month led by weak global trend. The category also reported outflows of Rs 36 crore in April, the third consecutive month of outflows after Rs 87 crore and Rs 8 crore of outflows in March and February, respectively, due to a fall in demand for the commodity," the Crisil report said.
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