MF assets increase by 3.30 percent in August

New Delhi: As eased liquidity situation prompted corporates to invest more money with mutual funds, the average assets under management of mutual fund houses went up by 3.30 percent for the month of August.

While the industry's average assets under management (AUM) saw an increase of 21,992 crore (3.30 percent) in August compared to the previous month, the combined average AUM of 39 fund houses stood at 6,87,559.54 crore.

Do you think Americans are Workaholics?

	Yes
	No

   View result

Industry experts said that fund houses continued to buy debt instruments all over the month while they sold equities. Moreover, banks parked money into those MFs that increased the assets managed by them.

According to the data showed by the Association of Mutual Funds in India, Reliance MF, India's largest fund house, saw an addition of 2,332 crore, or 2.28 percent, to its average assets at 1.04 lakh crore.

The assets of the second largest fund house, HDFC MF, increased to 90,179 crore, a rise of 5,550 or over six percent over the last month.

On account of withdrawal by corporate and banks, the MF industry witnessed decline in their asset base for June and July. However, during August, MFs stayed away from equities even as Sensex gained 0.6 percent.

According to an executive at a top fund house, in order to attract customers to maintain their asset base, fund houses are launching products with fixed income guarantee.