All fund categories show positive returns: CRISIL FundServices

All CRISIL fund indices ended higher in September as equity markets were buoyant and the debt markets saw yields easing and bond prices rising. The mutual fund industry's average assets under management (AUM) however slipped marginally in September after witnessing five successive months of gains.

The month-end AUM however saw a very steep fall with high outflows in the debt category. Indian equity benchmark indices ended up 9 per cent to reach 16-month highs buoyed by strong liquidity, persistent foreign institutional investor inflows and expectations of strong quarterly results.

According to  Krishnan Sitaraman, director, CRISIL FundServices, "All sectoral indices analysed gave positive returns in September with the banking sector topping gains with an 18 per cent monthly rise.

The metal, auto and healthcare sectors followed with monthly gains of 14.5 per cent, 13.4 per cent and 13 per cent respectively."

Bond prices rose owing to growing expectations that liquidity in the system would not be withdrawn in the immediate future as well as that of a potential increase in the held-to-maturity investment ceiling for banks. The latter would generate greater banking sector appetite for fresh bond issuances.

The CRISIL FundeX (tracks diversified equity funds) registered the highest gains on the back of an upbeat equity market. The CRISIL FundeX was up 7.85 per cent in September followed by CRISIL Fundbx (tracks balanced funds) with 6.52 per cent returns.