Gold Silver Reports ~ Gold exchange traded funds, or ETFs, posted their highest jump in 30 months in February, growing 9.4%, or by Rs 5.76 billion, to Rs 66.72 billion, thanks to MTM gains from a rise in underlying asset values,CRISIL. Gold prices, as represented by CRISIL Gold Index, rose 12.34% in the month due to a strong domestic demand and a firm global trend. The category, however, continued to witness outflows – for the 33rd month in a row.
The mutual fund industry saw its asset pile shrink for the fourth month on the trot in February. According to latest numbers from the Association of Mutual Funds in India (AMFI), assets under management (AUM) fell 0.9%, or by Rs 108.70 billion, to Rs 12.63 trillion in February, following up on the 0.1% (Rs 11.23 billion) drop seen in January.
The decline was primarily due to sharp mark to market (MTM) losses in equity and balanced funds in keeping with the trend in the underlying securities. However, the losses were capped by inflows into equity and liquid funds and MTM gains in gold ETFs.
Equity funds see steepest fall in over four years
Equity fund AUM fell 7.7%, or by Rs 297.08 billion, to Rs 3.55 trillion. This was the highest percentage decline in over four years and followed a 5.3% drop seen in January, retreating from an all-time high of Rs 4.06 trillion logged in December. The trend was in sync with the underlying equity market, as represented by the NIFTY 50, which fell 7.6% in February after having lost 4.8% in January.
Hearteningly, investors continued to repose their trust in the asset class despite the two-month downtrend, although the quantum tapered. February saw inflows of Rs 25.22 billion in the month – marking the 22nd straight month of inflows since May 2014. ~ Neal Bhai Reports