Financial Daily from THE HINDU group of publications
Saturday, Jun 19, 2004

Cross Currency

Group Sites

Markets - Mutual Funds

Despite mayhem, asset base of MFs shrinks only marginally

Our Bureau

Mumbai , Jun 18

DESPITE the mauling of the equity markets in May, the assets under management (AUM) of the mutual fund industry have reduced only marginally. The dip in AUM in May is by a meagre Rs. 6 crore.

Industry watchers attribute this to the fact that immediately after the market crash on May 17, investors presumed that the markets would look up and pumped in new money to take advantage of lower net asset values. However, with the sustained bearishness of the market, fresh investments tapered down towards the end of the month.

"AUM figures for June would accurately represent the erosion of investor interest in mutual funds. Investors found plenty of silver linings in May, even after the market crash," said the marketing head of an asset management company (AMC).

Four new schemes were introduced in May. These collected Rs 792 crore in all.

Public sector-bank sponsored funds registered the deepest fall in AUMs, losing nearly Rs 1,070 crore in May. Of this, UTI, the country's largest fund house, lost Rs 775 crore.

Franklin Templeton AMC continued to top the private sector AMCs with AUM of Rs 17,085 crore. Standard Chartered AMC, the debt specialists, clocked an increase in AUM to Rs 9,362 crore from April's figure of Rs 9,204 crore.

In the equities market, mutual funds were net buyers in May, aggregating Rs 1,005 crore of net purchases of equities, according to data from the Securities and Exchange Board of India.

More Stories on : Mutual Funds

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Despite mayhem, asset base of MFs shrinks only marginally

Bears hold sway
Tata Elxsi up on media initiative
Little-known counters shine at Lyons Range
Expansion projects buzz props up Tata Tele stock
Tata Steel: Outlook seen negative; sell July futures
SEBI directs Information Tech to transfer records
All-round selling pressure drags index
Consumer forum urges transfer of IE&PF to SEBI

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line