Assets under management (AUMs) of Indian mutual funds have shown an increase of 4 per cent in December 2008. AUM had been declining since last three months according to the data released by the AMFI. The growth is caused following good performance of income funds. AUM of the mutual fund industry stands at Rs 4,18,336 crore as on December end as compared to Rs 4,02,029 crore in November 2008.

Out of 34 fund houses, 17 houses reported growth in assets. Reliance Asset Management remains at the top slot witnessing 3.5 per cent increase in AUM followed by HDFC and UTI. LIC Mutual Fund replaced Kotak Mahindra Mutual Fund by securing the ninth slot. However, AUMs of Edelweiss Mutual Fund and Mirae AMC have shown negative growth in the reporting period.

The CIO of Birla Asset Management A Balasubramanian said, "Income funds typically tend to do well in a falling interest rate scenario." Birla's debt assets have shown a growth of 15 per cent in December following good performance by the short-term debt and gilt funds. UTI Asset Management CMO, Jaideep Bhattacharya said that the growth in AUMs is due to the flow of corporate and bank money into the income funds. He added, "Though there are a few takers for the long-term FMPs, corporate continue to use these to park their short-term money."