December- Monthly Mutual Fund Report :: HDFC Securities

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The month end Assets Under Management (AUM) of Indian Mutual Fund industry decreased marginally during November 2014 by 0.5% or Rs. 5,344 crore M-o-M to Rs. 10,90,309 crore Vs. Rs. 10,95,653
crore seen in the previous month (Source: AMFI Monthly data).
The decrease in the value of assets despite positive equity market during the month was mainly attributed to considerable outflows from Liquid Funds.
The maximum growth among MF categories during the month was seen in the AUM of Income Funds by 15%, while the maximum drop witnessed in the AUM of Liquid Funds category by -18%.
The mutual fund industry saw net inflows of Rs. 25,628 crore during the month. The equity categories saw net inflows of Rs. 4,748 crore during last month.

Equity Markets:
The Benchmark indices ended positive for the month of November 2014. BSE Sensex rose by 2.97% and Nifty closed higher by 3.20% for the month. The market ended at new record closing high on 28th
November 2014 following further fall in crude oil prices after the OPEC decided not to cut output. Hopes of rate cut or indication of rate cut in monetary policy on December 2 also pushed market higher.
Debt Markets:
The yields of the domestic bonds inched down during the month of Nov 2014. The benchmark, ‘8.40% GOI 2024’ bond yield closed at 8.09%, down by 19 bps over the last month. Some of the factors that
influenced the market sentiments negatively during the month included announcement for OMO sale by the RBI, weakness in the domestic currency, profit booking by market participants. Major factors
that influenced the market sentiments positively during the month included cut in prices of petrol and diesel by the oil marketing companies, softened and stable crude prices, expectations for a softer reading on inflation numbers, value buying by market participants, lower trade deficit data, stronger rupee, etc. The liquidity availed through various sources (Liquidity Adjustment Facility, export refinance,
marginal standing facility and term repos) from RBI during the month was lower at Rs. 49,545 crs as compared to Rs. 61,299 crs in September 2014.
Categories Month-end Corpus – Detailed:
The AUM for equity category rose during last month by 6% MoM to Rs 2,78,682 crore on the back of
considerable inflows and positive domestic equity market. The domestic Benchmark indices ended positive
for the month of November 2014. BSE Sensex rose by 2.97% and Nifty closed higher by 3.20% for the
month. The market ended at new record closing high on 28th November 2014 following further fall in crude
oil prices after the OPEC decided not to cut output. The Equity category saw net inflows of Rs. 4,748 crore
during the month (for the eighth consecutive month). The category accounts for 25% of the overall assets of
the Indian MF industry.
The AUM of ‘Other ETFs’ category rose by 10% to Rs. 5,997 crore due to positive equity market and
considerable inflows into the category. The category witnessed net inflows of Rs. 492 crore.
The Balanced category saw net inflows of Rs. 879 crore. The AUM of the category rose by 8% to Rs. 22,769
crore.
The AUM of the ELSS category witnessed a rise by 4.9% during the month. The category saw net inflows of
Rs. 215 crore during the month as the tax saving season approaches. The AUM of the category stood at Rs.
36,002 crore.
The AUM of “FOF Overseas” category fell during last month by 1.3%.The category saw net outflows of Rs.
128 crore during the month. The AUM of Gilt category rose the most during last month by 15.3% to Rs.
7,099 crore. The category saw net inflows of Rs. 814 crore during the last month. It is the third consecutive
month that the Gilt category witnessed inflows on the back of the expectation that the RBI will ease the
policy rate. The inflows trend is likely to continue going forward as the investors would prefer to allocate
into this category given the favorable macro situation in the domestic front would increase the values of the
bonds.
The AUM of liquid funds fell the most during last month by 18%. The category witnessed net outflows of Rs.
52,460 crore during the last month. The AUM of the category stood at Rs. 2,28,149 crore. The AUM of the
income category rose by 5% to Rs. 5,00,595 crore and the category saw net inflows of Rs. 19,844 crore. Like
Gilt funds, longer duration debt funds are in demand as they are expected to generate better returns in the
falling interest rate scenario. The corpus of the Gold ETF category witnessed a marginal rise during
November by Rs. 29 crore or 0.4% to Rs. 7,060 crore due to appreciation in the gold prices. However, the
category saw net outflows of Rs. 32 crore during the month. The prices of the gold in USD terms fell by 3.3%
while in INR term fell by 2.8% during last month.

LINK
http://www.hdfcsec.com/Share-Market-Research/Research-Details/MFReports/3010277