Assets of the mutual fund industry touched an all-time high of Rs639,000 crore (approximately $136 billion) in May, aided by the spike in the stock market by over 50 per cent in the last one month and fresh inflows in liquid funds, data released by the Association of Mutual Funds in India (Amfi) shows yesterday.
The previous highest average AuM (assets under management) was recorded at Rs5,99,417.35 crore in May 2008.
According to data, the average AuM of mutual funds for May stood at Rs6,39,130.20 crore, up 15.94 per cent from the previous month (Rs5,51,254.22 crore).
The equity schemes of mutual funds recorded hefty gains, fuelling the growth in assets under management.
Thirty-five fund houses cumulatively added assets worth Rs87,300 crore last month.
The top 10 fund houses added Rs67,700 crore to their AuM.
The largest fund house, Reliance mutual fund, registered 16 per cent growth in its AuM to Rs1,02,730.16 crore in May compared with the April figure of Rs88,387.99 crore.
The second-largest fund house, HDFC Mutual Fund, grew 18 per cent to Rs75,406.10 crore, compared with the previous month's figure of Rs63,880.63 crore.
ICICI Prudential and UTI MF added Rs9,500.58 crore and Rs8,947.88 crore, respectively, to their assets last month.
In fact, taking a cue from the improved sentiments of investors, many mutual funds have decided to come up with new schemes.
Baroda Pioneer saw the sharpest rise in assets of 85 per cent in May compared with April, followed by Taurus mutual fund, which grew 73 per cent.
JP Morgan and Kotak Mahindra registered growths of 42.5 per cent and 31 per cent, respectively.
Even new fund offers have started improving their performance. For instance, ICICI Prudential Target Returns fund has collected Rs800 crore.
However, according to Value research, many mutual funds are still sitting on a pile of cash as large as 16 per cent of their AUMs, which means they are not investing in equities to a large extent.
The mutual fund industry's AUM grew Rs1,38,247.89 crore, or 27.60 per cent, in the last three months.