The Hindu Business Line : Mutual fund AUMs fall in September

The mutual fund industry saw a 5.08-per cent decline in asset base in September. The industry lost Rs 15,581.76 crore bringing the assets under Management (AUM) to Rs 2,91,199.81 crore.

Of the 30 mutual funds, the asset bases of 17 dropped.

"This phenomenon is usually witnessed during September every year as companies and banks have to pay advance tax. Thus, they withdraw their money," said Mr Vikrant Gugnani, President, Reliance Mutual Fund.

Mr Rajeev Anand, Chief Investment Officer at Standard Chartered Asset Management Co, said redemptions also occur prior to every quarter results and the amount redeemed is not huge.

"We should witness fresh inflows in October," he added.

The assets of Prudential ICICI MF declined by Rs 3,908.5 crore (down 11.46 per cent), the highest for the month.

Standard Chartered MF also saw a big decline of Rs 3,786.51 crore (down 24.35 per cent). Birla Sun Life MF lost Rs 2,482.55 crore of AUM (down 14.52 per cent).

No change has been seen in MFs with high AUMs. UTI MF continued to have high assets for September at Rs 34,755.11 crore. However, it witnessed a decline in its assets from August by Rs 272.39 crore. Prudential ICICI MF ranks second in high AUM at Rs 30,210.38 crore. Reliance MF, HDFC MF and Franklin Templeton MF follow this.

Only 12 MFs saw an increase in asset base for September.

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