The Indian Mutual Fund Industry’s assets increased to Rs. 6.75 trillion by the end of February 2012, recording an increase of Rs. 161 billion over Rs. 6.59 trillion in February.
According to Crisil Research, the 2% month-on-month rise in mutual fund assets in February 2012 was largely because of mark-t-market gains jagged by equity funds and inflows witnessed in money market. The uptick in the equity market, assets of equity funds rose by Rs. 61 billion to Rs. 1.86 trillion. The equity funds category reported outflows of Rs. 28 billion in February, possibly because of the redemptions by investors aiming to lock gains.
In February this segment observed a depletion of Rs 25 billion taking the total net outflows in the past four months in the category to Rs 226 billion. An analysis of month-on-month mutual fund flows and AUM distribution, shows that so far this year money market funds, gilt funds and gold ETF funds witnessed net inflows of Rs 332.89 billion, Rs 4.33 billion and Rs 1.67 billion respectively.