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Mumbai, June 3 Fresh investments in fixed income funds helped mutual funds increase their assets under management by 5.36 per cent in May.

“The bond market was very volatile in April and so all that money found its way into the less volatile, liquid funds,” said Mr Dhirendra Kumar, Chief Executive, Value Research.

The collective AUM rose by 30,576.72 crore in May, according to the data released by the Associations of Mutual Fund in India (AMFI).

“Parking money in liquid funds does not reflect the real growth as that is short term parking of money. It is the treasury money of banks and corporates,” said Mr Jaideep Bhattacharya, Chief Marketing Officer, UTI Mutual Fund.

“In the month of April, the call money rates were very low most of the days, and this prompted the banks to park their money in mutual funds,” said Mr Ramkumar K, Head (Fixed Income), Sundaram BNP Paribas Mutual Fund.

“Accretion to corporate surplus contributes to inflows in mutual funds in the first two months of any quarter, whereas in the last month of a quarter this money flows out of the system in advance tax payments,” he added.

“The mutual fund industry has not seen any significant money coming in and whatever money has come in is in fixed income funds,” said the Managing Director and Chief Executive Officer of a mutual fund house.

Reliance continued to maintain its position and registered an increase of over 2 per cent in its asset base. ICICI, which had a 6-per cent rise in its AUM, now manages Rs 59,060 crore.

It was HDFC mutual fund that has replaced UTI mutual fund at third position after an increase of over 8 per cent in its AUM. UTI managed an AUM increase of 4 per cent.

“Investor interest has slowed down considerably. We may not see retail investors coming back for a while as the market is dull due to high oil price and inflationary concerns,” said the Chief Executive Officer of a mutual fund house.

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