Long-maturity debt funds post marginal growth
After a fall in the previous quarter, long-maturity debt funds – long-term debt and gilt – posted marginal growth in September quarter led by expectations that the Reserve Bank of India (RBI) may announce a rate cut. On October 4, it lowered the repo rate by 25 basis points to 6.25 per cent, after six months from the last rate cut. Income funds’ assets rose 3.00 per cent, or by Rs 2,817 crore, to Rs 96,690 crore while gilt funds posted a gain of 5.34 per cent or Rs 812 crore to Rs 16,019 crore. 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.