Equity funds top performer in 2009, finds Crisil
Financial Express, January 14, 2010, Page 13
fe Bureaus, Chennai
Equity funds were the strongest performers among all fund categories in 2009, registering a one-year return of over 80%. The performance was driven by sharp uptick in the equity markets with mid-and small-cap investments outperforming the larger ones.
The year also witnessed a near doubling in the assets under management (AUM) of the mutual fund industry. However, December was a dampener when the industry suffered the highest-ever monthly net outflows due to corporate and bank withdrawals.
Crisil Fund~eX (which tracks diversified equity funds) was up by 81% in 2009, reflecting the highest growth among all mutual fund categories. This was higher than S&P CNX Nifty's growth of 76%. The performance of the diversified equity funds was supported by the strong performance of the mid- and small-cap stocks with the respective indices, showing growth in excess of 100% in 2009.
Balanced funds also performed well in 2009 with Crisil Fund~eX (which tracks balanced funds) returning 70% in 2009. Most debt categories gave single digit returns with gilt funds giving negative returns on account of the increasing interest rate scenario, especially in the second half of the year.
On an overall basis, year 2009 was positive for the mutual fund industry on the AUM front, with average AUM almost doubling to Rs 7,96,000 crore in December from the year-ago Rs 4,21,000 crore. Month-end AUM, on the other hand, saw a 60% growth on a year-on-year basis.
According to Krishnan Sitaraman, director of Crisil FundServices, "This growth was primarily due to high liquidity in the system which saw large inflows into liquid and ultra short-term debt schemes. The buoyant equity market, which grew sharply in 2009, gave a similar boost to equity fund AUM. While AUM of debt-oriented funds saw a 55% growth over the year, equity fund AUM saw a much higher 77% growth mainly due to mark to market gains."
The monthly net oulflow in December stood at Rs 1,57,000 crore. Majority of the outflow was from ultra short-debt schemes and liquid funds. Accordingly, average AUM fell 1.6%, or Rs 13,000 crore, to Rs 7,96,000 crore in December.
Month-end AUM witnessed a steeper fall of 19% to Rs 6,70,000 crore. A similar trend was also seen in March and September. Corporates withdrew their investments to meet their advance tax payments while banks pruned mutual fund investments to meet their quarter end balance sheet requirements on capital adequacy. However, equity-oriented funds witnessed a rise in AUM of Rs 5,600 crore on mark to market gains.
Financial Express, January 14, 2010, Page 13
fe Bureaus, Chennai
Equity funds were the strongest performers among all fund categories in 2009, registering a one-year return of over 80%. The performance was driven by sharp uptick in the equity markets with mid-and small-cap investments outperforming the larger ones.
The year also witnessed a near doubling in the assets under management (AUM) of the mutual fund industry. However, December was a dampener when the industry suffered the highest-ever monthly net outflows due to corporate and bank withdrawals.
Crisil Fund~eX (which tracks diversified equity funds) was up by 81% in 2009, reflecting the highest growth among all mutual fund categories. This was higher than S&P CNX Nifty's growth of 76%. The performance of the diversified equity funds was supported by the strong performance of the mid- and small-cap stocks with the respective indices, showing growth in excess of 100% in 2009.
Balanced funds also performed well in 2009 with Crisil Fund~eX (which tracks balanced funds) returning 70% in 2009. Most debt categories gave single digit returns with gilt funds giving negative returns on account of the increasing interest rate scenario, especially in the second half of the year.
On an overall basis, year 2009 was positive for the mutual fund industry on the AUM front, with average AUM almost doubling to Rs 7,96,000 crore in December from the year-ago Rs 4,21,000 crore. Month-end AUM, on the other hand, saw a 60% growth on a year-on-year basis.
According to Krishnan Sitaraman, director of Crisil FundServices, "This growth was primarily due to high liquidity in the system which saw large inflows into liquid and ultra short-term debt schemes. The buoyant equity market, which grew sharply in 2009, gave a similar boost to equity fund AUM. While AUM of debt-oriented funds saw a 55% growth over the year, equity fund AUM saw a much higher 77% growth mainly due to mark to market gains."
The monthly net oulflow in December stood at Rs 1,57,000 crore. Majority of the outflow was from ultra short-debt schemes and liquid funds. Accordingly, average AUM fell 1.6%, or Rs 13,000 crore, to Rs 7,96,000 crore in December.
Month-end AUM witnessed a steeper fall of 19% to Rs 6,70,000 crore. A similar trend was also seen in March and September. Corporates withdrew their investments to meet their advance tax payments while banks pruned mutual fund investments to meet their quarter end balance sheet requirements on capital adequacy. However, equity-oriented funds witnessed a rise in AUM of Rs 5,600 crore on mark to market gains.
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