Mumbai: Net assets under management of domestic mutual funds rose 7.81 percent one month to 6.59 trillion rupees in January, on the back of 22.45 percent jump in assets of liquid funds.
   
Liquid funds saw an inflow of 264.29 billion rupees in January, against an outflow of 488.49 billion rupees in December, according to data from Association of Mutual Funds in India.
   
In December, the industry's assets fell 10.31 percent one month to 6.11 trillion rupees as companies redeemed investments from liquid funds to pay Oct-Dec advance tax.
   
Net assets of gilt funds rose 19.55 percent one month as hope of fall in interest rates led investors to migrate to long-duration debt schemes.
   
"The Reserve Bank of India is likely to start cutting rates from March or April, which will help long duration funds to give positive returns," said a head of fixed income from a bank-sponsored mutual fund.
   
Among equity funds, diversified equity schemes registered 11.4 percent on-month rise in net assets to 1.56 trillion rupees on the back of 11.25 percent rise in BSE's 30-stock Sensex and 12.43 percent jump in National Stock Exchange's 50-stock Nifty.
   
Assets of gold exchange-traded funds were up 5.04 percent at 96.14 billion rupees as the spot price of the precious metal rose 3.84 percent from the previous month.

Mumbai: Net assets under management of domestic mutual funds rose 7.81 percent one month to 6.59 trillion rupees in January, on the back of 22.45 percent jump in assets of liquid funds.
   
Liquid funds saw an inflow of 264.29 billion rupees in January, against an outflow of 488.49 billion rupees in December, according to data from Association of Mutual Funds in India.
   
In December, the industry's assets fell 10.31 percent one month to 6.11 trillion rupees as companies redeemed investments from liquid funds to pay Oct-Dec advance tax.
   
Net assets of gilt funds rose 19.55 percent one month as hope of fall in interest rates led investors to migrate to long-duration debt schemes.
   
"The Reserve Bank of India is likely to start cutting rates from March or April, which will help long duration funds to give positive returns," said a head of fixed income from a bank-sponsored mutual fund.
   
Among equity funds, diversified equity schemes registered 11.4 percent on-month rise in net assets to 1.56 trillion rupees on the back of 11.25 percent rise in BSE's 30-stock Sensex and 12.43 percent jump in National Stock Exchange's 50-stock Nifty.
   
Assets of gold exchange-traded funds were up 5.04 percent at 96.14 billion rupees as the spot price of the precious metal rose 3.84 percent from the previous month.

(Agencies)