MFs scale another peak; equities, liquid plans, FMPs rule
08 December 2006
The mutual funds' assets under management (AUMs) recorded a growth of over 10 per cent to touch Rs.3.41 trillion, another all-time high for the second month in a row. The buoyant equity market had a major role to play in the increase in AUMs, with liquid schemes and the popular fixed maturity plans providing strong support.
While liquid schemes saw a 15 per cent spurt in AUMs, income scheme assets increased by 9.5 per cent, and equity assets increased by 6.6 per cent during November, 2006. The mutual funds were in profit booking mode in the secondary market; they made net sales of Rs.247.3 million during the month. Their gross investments (the sum of buy and sell transactions) were, however, higher, at over Rs.250 billion compared to about Rs.200 billion, the previous month.
These findings were part of CRISIL Risk Adjusted Return Ranking (CRISIL~RRR), the monthly ranking report for mutual fund schemes from CRISIL FundServices. The CRISIL~RRR for the month of November 2006, covered 12 asset classes and 279 schemes, representing almost 53 per cent of the assets managed by domestic funds. The CRISIL~RRR measures the return performance of the schemes over the period of analysis, adjusted for the risks they took to get those returns.
During the month under review, the S&P CNX Nifty gained over 200 points, and closed in on the 4000 mark by the end of November, thus adding 6 per cent to its previous month's tally. The index reached an all time high of 3968 on November 27 in a firm and bullish equity uptrend. Foreign institutional investors continued to drive the market and pumped in over USD2 billion during the month. Further, a 9.2-per cent GDP growth in the second quarter (Q2) of 2006-07 (refers to financial year, April 1 to March 31), a slowdown in the US, and a weakening US dollar were the macro-level factors in favour of the rally.
Equity diversified category:
- Sundaram BNP Paribas Select Midcap - Growth continued to top the category
- UTI Infrastructure Fund - Dividend at CRISIL~RRR 2
- HDFC Growth Fund - Growth was at CRISIL~RRR 3