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Money Jul 10, 2012

Over Rs 200 cr out of gold ETFs in June, biggest monthly outflow

New Delhi: Gold exchange traded funds (ETFs) witnessed monthly outflows of Rs 230 crore in June 2012 due to profit booking as gold prices rose sharply during last one year, Crisil Research said on Monday.

Assets under gold ETFs fell by 2.2 percent over the month to Rs 10,100 crore in June, Crisil said, citing data from the Association of Mutual Funds in India (AMFI). Gold prices represented by CRISIL Gold Index have risen 34 per cent in the one-year period ended June 29, 2012, it said in a statement.

Reuters

The company said mutual fund industry's month-end assets under management (AUM) fell by 1.5 percent or Rs 10,500 crore to Rs 6.89 lakh crore. It fell because of outflows in money market funds that witnessed cyclical quarter-end outflows due to withdrawals by corporates, it added.

"Money market funds witnessed outflows of Rs 25,100 crore mainly because of corporates withdrawing their short-term mutual fund investments to meet advance tax requirements (Rs 25,000 crore to Rs 30,000 crore)," it said. The equity funds assets rose by 5.4 per cent or Rs 9,200 crore to Rs 1.8 lakh crore in June.

"The rise in month-end assets of equity funds was primarily due to mark-to-market gains from the underlying equity markets despite the category witnessing marginal
outflows (Rs 300 crore) in the month," it said. The equity market, represented by the S&P CNX Nifty, rose by 7 pe cent during the month led by positive domestic and global cues, it said.

Income funds, including ultra short-term debt funds and fixed maturity plans, saw inflows of Rs 1,570 crore in June, same as the previous month. The inflows were largely on account of fixed maturity plan (FMP) new fund offers (NFOs) where investors are able to lock into higher yields.

The month-end assets of income funds rose by 1.06 percent or Rs 3,300 crore to Rs 3.17 lakh crore.

PTI


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