Asset under management (AUM) of mutual fund industry grew by 5 per cent to Rs 670,000 crore in June, propelled by stable equity market conditions and increased liquidity in the system. In May, the assets sto-od at Rs 639,000 crore.

Reliance Mutual Fund continues to be the largest fund house with asset under management of Rs 108,000 crore.

Saurabh Nanavati, chief executive officer of Religare Mutual Fund, said there is liquidity in the system and investors have shown confidence in equity funds as share markets show signs of stability. Waqar Naqvi, CEO, Taurus Mutual Fund, said equity funds are witnessing net inflows thanks to the confidence reposed by investors on the equity market. However, he said a large part of the Rs 31,000 crore jump in AUM can be attributed to flow in liquid funds.

Vikaas Sachdeva, head, business development, Bha-rti AXA MF, said mutual fund houses usually see outflows from debt funds in quarter ends and that explains the drop witnessed by the house.