The Hindu Business Line : Mutual funds' asset base swells in June

IN spite of the continued slump in the returns posted by mutual funds, average assets under management of the industry marginally increased in June. According to data collected by the Association of Mutual Funds in India (AMFI), overall assets under management of the industry stood at Rs 1,55,845 crore as on June 30, up Rs 1,827 crore from May.

Technology sector specific funds are back in vogue and have registered returns of 8.17 per cent during the last month. The erosion in value on these funds over the last six months has been less than half of diversified equity funds.

Floating rate funds have posted the best returns in the first half of this year. The average sector returns for floating rate funds have been 2.18 per cent.

Short-term debt funds have also remained positive, returning 1.89 per cent so far this calendar year.

Total sales stood at Rs 70,810 crore during June; as against this, Rs 69,041 crore worth units were redeemed in the same period.

The movement of funds into the industry were in favour of private sector Indian fund houses and predominantly foreign held joint ventures. Over Rs 1,200 crore moved into this category.

Bank-sponsored and institutional asset management companies witnessed a drop in their AUMs last month.