Short-maturity debt funds continued to gain traction in September quarter as investors preferred investing in a less volatile debt category compared with long-maturity debt funds amid uncertainty over the interest rate scenario in the country.
Within this universe, ultra short-term and short-term debt funds posted record growth in absolute terms of Rs 33,296 crore and Rs 33,640 crore, respectively, to a new high of Rs 1.80 lakh crore and Rs 1.94 lakh crore, respectively.
Liquid funds’ assets also hit a new peak of Rs 3.72 lakh crore with a gain of Rs 29,742 crore, following Rs 19,575 crore rise in the previous quarter.
The mutual fund industry’s average assets under management (AUM) hit a historic high of Rs 16.11 lakh crore (excluding fund of funds) in the quarter ended September 2016, according to numbers released by the Association of Mutual Funds in India (Amfi).
The industry gained a record Rs 1.70 lakh crore or 11.78 per cent during the quarter led by rise in assets of equity and short-maturity debt funds.