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MF Industry has not Invested in Real Estate Commercial Paper – SEBI Data Reveals

Add comment   |   December 16, 2009    08:25am   |Contributed by Indian Realty News

The mutual fund industry has not invested a single rupee in the real estate commercial paper in the three months of August to October as Securities and Exchange Board of India (SEBI) mutual fund deployment data shows. This is in sharp contrast to what happened last year. In May 2008, the investment into real estate commercial paper was as high as Rs 7,400 crore which was brought down gradually as the year progressed to Rs 6,600 in June, about Rs 6,500 in July and ultimately to little over Rs 2,300 crore in October 2008.

However, in sharp contrast with October 2009 where there have not been a single rupee that has being invested in commercial paper, clearly, mutual funds have wound down there investments into real estate commercial paper. Another set of interesting numbers that this Sebi Mutual Fund deployment data has thrown us up is that mutual funds parked almost 52.6% of debt AUMs in less than 90 days securities in October 2009. Now it is less than 90 days securities accounting for about 38% of debt AUM in September 2009.

Experts say that this high jump is because of the money which went out in September. The money, which went out of debt and liquid schemes in September owning to quarter end, has come back in mutual funds. The highest amount which they have parked is in banks certificates of deposits are about 35% as compared to 41% last month.

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