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Mutual Funds Update As On 30th April, 2010
According to the statistics announced by the Association of Mutual Funds in India (AMFI), the domestic mutual fund industry's Average Assets Under Management (AAUM) grew by Rs 21,640 or 2.90% during the month of April, 2010. The combined AAUM of the 38 fund houses stood at Rs 7,69,165 crore in April 2010, as against Rs 7,47,525 crore in March 2010.
The rise in AAUM was mainly due to inflows into liquid funds. Moreover, banks and corporates who earlier withdrew their money from mutual funds in March 2009, turned net buyers once again.
We think that even though the increase of 2.90% may appear diminutive on a month-on-month basis, when analysed on a year-on-year basis, the AAUM has increased by whopping 40% (AAUM in April 2009 was Rs 5,50,994 crore). This displays investor confidence in the Indian economy, at a time when the developed nations appear to be still reeling from more economic crises, such as the trouble being faced by the Greek economy currently |
