The assets under management (AUM) of the mutual fund industry grew by over 4 per cent in May to cross the Rs 8 lakh-crore mark and attain a six-month high.
The industry's average AUM grew by Rs 34,393.67 crore, or 4.47 per cent in May. The combined average AUM of the 37 fund houses stood at Rs 8,03,559.06 crore.
The last time the industry saw this record level of average AUM was in November, when the assets hit an all-time high of Rs 8.07 lakh crore, data by the Association of Mutual Funds in India (AMFI) showed.
Over May, Reliance MF, the largest fund house, saw an addition of Rs 7,154 crore to its average assets at Rs 1.19 lakh crore.
After a gap of six months, the assets of HDFC MF breached the Rs 1 lakh crore mark in May. By the end of May, the AUM of HDFC had increased by Rs 7,160.53 crore to Rs 1,01,863.31 crore, becoming the second fund house to manage assets of over Rs 1 trillion.
Third-largest fund house ICICI Prudential MF saw its assets rising by Rs 4,674.30 crore to Rs 87,709.81 crore.
"The funds, which were pulled out in March, were reinfused in May. Also, short-term and ultra short-term funds saw hefty inflows, which propelled MF industry assets," Kotak Mutual Fund (fixed income and products) head Lakshmi Iyer said.
However, UTI MF bucked the trend and saw a decline of Rs 840 crore from its assets to Rs 78,617.15 crore during May.
During May, the BSE Sensex dropped 3.5 per cent as world equities wobbled on concerns over a debt crisis in the Eurozone. Analysts said that although inflow was not there in equity schemes, debt funds continued to witness investment interest.
Over the month, L&T MF added Rs 1,045 crore to its average assets, with May being the second consecutive month of rise. At the end of May, the AUM of L&T MF breached the Rs 5K crore mark to Rs 5,170.69 crore.
During May, the average assets of Kotak MF rose by Rs 6,914 crore while Birla Sun Life MF saw its AUM increasing by Rs 4,319 crore.
The other fund houses that saw their average AUM rise in May included IDFC MF, Edelweiss MF, Franklin Templeton MF and Tata MF.
Of the 37 fund houses in the country, about 15 saw erosion in its average AUM. This included LIC MF, whose assets fell by Rs 1,544 crore to Rs 38,963 crore, and JP Morgan MF, which saw a decline of Rs 330 crore to Rs 3,785.
Others that saw a decline in their assets included HSBC MF, Deutsche MF, Mirae Asset MF and SBI MF.