The combined average assets under management (AAUM) of mutual funds have exceeded the Rs 6 trillion-mark in May. This is the highest ever rise since its inception.

 

The industry AUM, encouraged by the rise in stock value, jumped almost Rs 87,000 crore in May, a 16% rise from April, according to the data by Association of Mutual Fund of India (AMFI). The phenomenal increase was guided by Reliance, HDFC, ICICI Prudential, UTI, and Kotak Mahindra mutual funds, together accounting for Rs 51,000 crore out of the Rs 87,000 crore increase.

 

The AAUM has increased for the third month in succession. There was an increase in the combined AAUM of 34 fund houses in May against that in April. Reliance MF has maintained its position as the No. 1 fund house in the country. Reliance MF registered a gain of about Rs 14,342 crore in May, while HDFC MF, the second largest, gained Rs 11,525 crore.

 

The money coming through liquid funds has made a significant contribution apart from the 30% increase in the net asset values of diversified equity funds in May. Most banks are keeping their extra cash with mutual funds to gain good returns.

 

According to the mutual fund experts, there might be redemptions in June because a quarter ends and companies may cash out to boost balance sheets. But, the investors may cling to equities to an extent since there has been an improvement in their perception towards equities.