Strong capital inflows and surge in equity markets have helped mutual fund industry get assets under management (AUM) climb to record high of nearly Rs 11 lakh crore in October.
As per data by Association of Mutual Funds in India (AMFI), 45 fund houses of the entire country had an average AUM of Rs 10,95,653 crore at the end of October 31, 2014, up from Rs 9,59,415 crore in the preceding month.
The AUM data for individual fund house is not being disclosed. Experts said the monthly rise in AUM is largely on account of gains in equity markets and strong capital inflows. Besides, retail participation in equity schemes has increased significantly during the recent months. The fund houses together witnessed an inflow of Rs 1.24 lakh crore. During the month, the benchmark BSE Sensex grew by over 1,200 points or nearly five per cent.
The assets managed by mutual funds had crossed Rs 10 lakh crore-mark for the first time in May, when the markets went up after the General Elections' result. Mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.