MFs schemes’ 2013-14 fund mobilisation fall 30% to Rs54,000 crore

Mutual fund schemes saw a 30-per cent drop in fund mobilisation in 2013-14, having garnered nearly Rs54,000 crore during the financial year.

Net inflows to various mutual fund schemes stood at Rs53,782 crore during the 2013-14 financial year against Rs76,539 crore in the previous financial year, as per the latest data available with the Securities and Exchange Board of India (SEBI).

Industry experts, however, expect fund mobilisation in mutual fund schemes to grow in the coming months in view of long-term policy for the sector announced by SEBI, which proposes a number of tax benefits and measures for growth of MF business.

The policy is aimed at channelising household savings into equities and mutual funds.

SEBI announced the new measures following net outflows of more than Rs22,000 crore and over Rs49,000 crore out of the mutual fund kitty during 2011-12 and 2010-11, respectively.

Gross mobilisation by mutual funds stood at over Rs97,68,000 crore during 2013-14, against redemptions worth Rs97,14,000 crore, resulting in a net inflow of Rs53,782 crore.

Of the total net investment made in the past fiscal, a huge part of inflows in the mutual fund schemes came during April 2013 and January 2014.

In April, mutual funds mobilised around Rs1,08,000 crore in various schemes – the highest net inflow by investors in such schemes in a single month since April 2011, when investors had put in a whopping Rs1,84,000 crore.

MFs mobilised Rs83,533 crore in various schemes in January.

Total asset under management of mutual funds grow to Rs8,25,000 crore as of 31 March 2014 from Rs7,01,000 crore during fiscal 2012-13.