Mutual Fund Resurgence | Value Research and AMFI India
While the month’s average assets under management AAUM data released earlier by AMFI showed mutual fund assets at 6.39 lakh crore, the actual assets under management AUM as on May 31, 2009 were at 6.65 lakh crore, up 11.95 per cent from Aprils figure.
AUM for May 2009 (http://www.amfiindia.com)
zyakaira notes: At about this time last year AUM were INR 550000 Crores at the market peak and this is a good 20% increase from that period. At the bottom, AMFI India had even reported overall assets of less than 400,000 Crores
Rs. 1 Lakh Crores = 1 trillion = USD 20 billion
= 2% of Indian GDP = 1.5% of Market Cap
Rs.6.75 lakh cores = INR 6.75 trillion = USD 135 billion
= 13% Indian GDP = 10% Indian Market Cap
(This can easily double in this year itself! if Investor frenzy is unabated)
While FMPs’ relevance is being questioned, mutual funds abstained from launching any new ones during the month. FMPs were actually redeemed to the tune of Rs 5,895 crore in the month. Interval funds, which are increasingly being wound up, saw redemptions worth Rs 425 crore.
Aside from equity, there were other categories that managed to attract investors’ attention on promises of gains that sounded valid to them. Three open-end income funds were launched during this period — Canara Robeco Dynamic Bond Fund, Morgan Stanley Active Bond Fund and Morgan Stanley Short Term Bond Fund. They raised a total of Rs 536 crore. Income funds, overall, saw net inflows of Rs 28,114 crore. The reason for Canara Robeco to launch this type of fund may well stem from the fact that it had just one other similar fund. As far as Morgan Stanley was concerned, it has been around in India for a long time without actually trying to expand and had decided to launch a new fund in 2008, but that is when the markets were crashing and they postponed it for a more auspicious time. With markets on a high since March 9, perhaps the fund house thought this was a propitious enough time for a NFO.
via Investors Pump-Prime Equity MFs – Value Research: The Complete Guide to Mutual Funds.
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The July AUM update here
AUM increased to a record 7.22 lakh crores ($150b) i.e. 15% of the nation’s GDP (for comparison) in July 09 led by 1 lakh crore ($21 b) in cash , liquid and short term funds