However, stock markets fared better surging 13.53 per cent in the reporting quarter.

Growth was driven by rise in assets of equity funds, short-duration debt funds and fixed maturity plans (FMPs), Crisil said today.

Equity mutual funds saw record absolute rise in average AUMs which rose by Rs 33,007 crore or 16 per cent to Rs 2.36 trillion, led by mark to market gains and inflows, it said, adding that the equity funds' contribution to gains in assets, was the highest among all categories.

The latest gain was also the third consecutive gain for the category, and was primarily led by improvement in sentiment for the underlying asset class on hopes of strong economic reforms by the Modi government.

Assets of FMPs continued to ride at record high levels with a rise of 12 per cent, or by Rs 18,643 crore, to touch Rs 1.74 trillion, it said.

Yields on one-year commercial paper and certificates of deposits traded at 9.26 per cent and 8.91 per cent, respectively, at the end of June, up significantly from 8.76 per cent and 8.15 per cent a year ago, it said.

Consolidated assets of the category rose almost 11.87 per cent, or by Rs 46,903 crore to Rs 4.42 trillion.

Individually, assets of ultra-short term funds rose by Rs 13,669 crore (highest since September 2012) to Rs 97,431 crore, liquid/money market funds by Rs 28,689 crore to Rs 2.69 trillion and short-term debt funds by Rs 4,546 crore (largest gain in the last four quarter to Rs 75,115 crore, the report said.

PTI