Assets under management (AUM) of the mutual fund industry created a new record in Januarya at ₹11.81 lakh crore, according to data released by the Association of Mutual Funds in India.

Equity funds posted net inflows for the ninth consecutive month, attracting net inflows of ₹6,324 crore in January against the backdrop of positive sentiment for the asset class. The CNX Nifty gained 6.35 per cent in the month on positive domestic and international cues.

Balanced funds, which invest a major portion of their funds in equity, also benefited from the ongoing uptrend in the equity market as the category drew in ₹835 crore during the month.

Liquid funds lead

Cyclical inflows into liquid funds provided the biggest boost to the overall AUM. Net inflows to the tune of ₹85,000 crore helped liquid funds become the biggest contributor to the industry AUM in the latest month. Cyclical inflows and mark-to-market gains boosted liquid funds’ AUM to ₹2.65 lakh crore.

A research report by ratings agency Crisil said, “The historical trend has shown that quarter-end outflows in the category are reversed at the start of the quarter as banks and corporates re-invest the surplus funds they had withdrawn to meet quarter-ended reserve requirements and payment towards advance tax outflows, respectively.”

Income funds logged net inflows of ₹12,163 crore on falling yields aided by the surprise interest rate cut by the RBI. Gilt funds saw net inflows for the fifth consecutive month, the category attracting net inflows of ₹1,813 crore.

January saw the launch of seven new equity schemes, one ELSS scheme and 21 new debt-linked income funds.

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