Mumbai: With gold prices soaring in June, investors preferred to make some money on their gold exchange traded funds (ETFs) with the category seeing a record outflow of Rs 230 crore during the month, according to rating agency Crisil.
"Gold ETFs witnessed monthly outflows of Rs 230 crore in June, the highest in the category. According to the Association of Mutual Funds in India (AMFI), assets under gold ETFs fell by 2.2 percent over the month to Rs 10,100 crore in June.
"The outflows from this category could be primarily due to profit booking after the price of the underlying metal rose sharply in the past one year due to global risk aversion and domestic buying," Crisil said in a report.
The prices of the yellow metal rose 34 per cent in a year ended June 29, 2012, according Crisil Gold Index.
The asset management industry saw a decline of 1.5 percent in assets in the month to Rs 6.89 trillion.
"The MF industry's month-end assets under management fell by 1.5 percent (Rs 10,500 crore to Rs 6.89 trillion) in the reporting month, primarily due to outflows in money market funds, which witnessed cyclical quarter-end outflows due to withdrawals by corporates.
"Money market funds witnessed outflows of Rs 25,100 crore primarily because corporates withdrew their short-term MF investments to meet advance tax requirements (Rs 25,000-30,000 crore)," the agency said.
Although the equity funds witnessed outflows during the month, its assets rose by 5.4 percent to Rs 1.8 trillion compared to a fall of 5.1 percent in May.
"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. The domestic equity market, rose by 7 percent in the month led by positive domestic and global cues," it noted.
With fund houses launching a slew of fixed maturity plans (FMPs), it wasn't surprising that the income funds saw inflows for the third consecutive month.
The category logged steady inflows of Rs 1,570 crore in the month, compared with the same amount of inflows seen in May. The inflows were largely on account of FMP new fund offers, where investors are able to lock into higher yields.
"FMPs continued to garner the majority of new offers in June with as many as 55 out of the 61 new fund offers, were being FMPs, garnering Rs 4,000 crore. The month-end assets of income funds rose by 1.06 percent to Rs 3.17 trillion by June," it said. 

(Agencies)

Investors cash out Rs 230 crore worth Gold ETFs in June

Outflow of Rs 230 cr from Gold ETFs

Tags: Outflow from Gold ETFs, Assets under Gold ETFs, CRISIL Gold Index, AMFI, Fixed maturity plans (FMPs)

Mumbai: With gold prices soaring in June, investors preferred to make some money on their gold exchange traded funds (ETFs) with the category seeing a record outflow of Rs 230 crore during the month, according to rating agency Crisil.
"Gold ETFs witnessed monthly outflows of Rs 230 crore in June, the highest in the category. According to the Association of Mutual Funds in India (AMFI), assets under gold ETFs fell by 2.2 percent over the month to Rs 10,100 crore in June.
"The outflows from this category could be primarily due to profit booking after the price of the underlying metal rose sharply in the past one year due to global risk aversion and domestic buying," Crisil said in a report.
The prices of the yellow metal rose 34 per cent in a year ended June 29, 2012, according Crisil Gold Index.
The asset management industry saw a decline of 1.5 percent in assets in the month to Rs 6.89 trillion.
"The MF industry's month-end assets under management fell by 1.5 percent (Rs 10,500 crore to Rs 6.89 trillion) in the reporting month, primarily due to outflows in money market funds, which witnessed cyclical quarter-end outflows due to withdrawals by corporates.
"Money market funds witnessed outflows of Rs 25,100 crore primarily because corporates withdrew their short-term MF investments to meet advance tax requirements (Rs 25,000-30,000 crore)," the agency said.
Although the equity funds witnessed outflows during the month, its assets rose by 5.4 percent to Rs 1.8 trillion compared to a fall of 5.1 percent in May.
"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. The domestic equity market, rose by 7 percent in the month led by positive domestic and global cues," it noted.
With fund houses launching a slew of fixed maturity plans (FMPs), it wasn't surprising that the income funds saw inflows for the third consecutive month.
The category logged steady inflows of Rs 1,570 crore in the month, compared with the same amount of inflows seen in May. The inflows were largely on account of FMP new fund offers, where investors are able to lock into higher yields.
"FMPs continued to garner the majority of new offers in June with as many as 55 out of the 61 new fund offers, were being FMPs, garnering Rs 4,000 crore. The month-end assets of income funds rose by 1.06 percent to Rs 3.17 trillion by June," it said. 

(Agencies)