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Indian mutual fund industry crosses `10 trillion in assets

LiveMint logoLiveMint 06-06-2014 Anirudh Laskar

Mumbai: The Indian mutual fund industry’s assets under management (AUM) crossed `10 trillion in May as the market surged before and after the election outcome as investors bet on the emergence of a stable government.

The industry’s AUM rose 7% or `6,578.10 crore to `10.11 trillion last month from `9.45 trillion in April, according to industry body Association of Mutual Funds in India (Amfi).

The rise in the AUM was primarily because of inflows across major mutual fund categories and a surge in domestic equity markets, according to rating and research firm Crisil Ltd.

Buoyed by positive equity markets, equity mutual fund schemes attracted inflows of `202.2 crore in May, which is the highest since February 2011. The category’s AUM rose to a record high of `2.17 trillion—the highest monthly growth of 13% in the past five years—led by inflows and mark-to-market gains, according to Crisil.

The underlying equity asset class represented by the CNX Nifty Index surged 8% during the month on the back of heavy capital inflows following the election outcome.

“Hopes of economic reforms by the new government have revived investors’ interest in the equity asset class...,” said a Crisil statement.

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