MF assets surge by record $17.2 Billion in May
By siliconindia   |   Friday, 05 June 2009, 15:10 IST   |    3 Comments
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MF assets surge by record $17.2 Billion in May
New Delhi: As the Sensex surged 28 percent in May, the domestic mutual funds saw an inflow of 20, 000 crore from the Foreign Direct Investors in the same month. The average Assets Under Management (AUM) surged by 15.8 percent, or Rs 86,320 crore ($17.2 billion) in the month, which took total industry size to a record Rs 638,326 crore. This was helped by both institutional and retail investors. Experts link it to the surge that started in March, since when the Sensex has risen by 80 per cent. "It is a combination of the rising market and the flow of institutional money. The confidence and conviction of the HNIs (high net-worth individuals) and the retail investors in the equity market is coming back. The equity flow was poor in 2008-09 but we expect it to be robust in 2009-10," said Sandesh Kirkire, Chief Executive Officer, Kotak Mahindra AMC, whose assets jumped 31 per cent or Rs 6,691 crore. The top three fund houses had a share of the 40 percent of the total growth of the industry in the form of gain in the assets, as the total gain in the month of April and May was 145, 041 crore.

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