Domestic gold prices represented by the CRISIL Gold Index, rose over 18% during the quarter. The rise in domestic gold price was aided by an increase in global US dollar denominated gold price, and weakening of the Indian rupee against the US dollar.
MUMBAI: Gold exchange traded funds (ETFs) witnessed a marginal gain of 1% in assets under managment in India due to market to market (MTM) gains during third quarter of 2013, according to CRISIL Research. On the other hand mutual funds as a whole witnessed a fall of 4.5% or 384 bn Indian Rupees and equity funds saw highest fall in past seven quarters, CRISIL said.
Domestic gold prices represented by the CRISIL Gold Index, rose over 18% during the quarter. The rise in domestic gold price was aided by an increase in global US dollar denominated gold price, and weakening of the Indian rupee against the US dollar. The category, however, saw redemptions of Rs 7 bn during the first two months of the quarter as per the latest information available from Association of Mutual Funds of India (AMFI).
Equity mutual funds’ average AUM fell by 6% or Rs 127 bn – highest fall in the last seven quarters – to Rs 1.86 trillion in the September quarter led by outflows and mark to market (MTM) fall.
The underlying market, represented by the CNX Nifty, fell by 2% during the quarter due to adverse global and domestic economic cues.
Indian mutual funds’ average assets under management (AUM) fell by 4.5% or Rs 384 bn to Rs 8.08 trillion during the quarter ended September 2013 compared to Rs 8.47 trillion in the previous quarter (excluding fund of funds) as per the latest numbers released by the AMFI.
The quarter marked the sharpest fall in mutual fund assets since December 2010 as investor sentiments were hurt due to volatility in equity and debt markets following the weak Indian currency. On the category front, money market and ultra short term debt funds’ AUM declined by Rs 231 bn and Rs 183 bn, respectively, while equity funds lost Rs 127 bn. However, fixed maturity plans (FMPs) saw inflows of Rs 142 bn in the quarter on the back of rising yields. Most mutual fund houses (34 out of 44) recorded a fall in their assets during the quarter. Share of direct plans increased marginally over the quarter to 26% of the industry’s AUM vis-à-vis 25% in the previous quarter.
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