The Hindu Business Line : Assets managed by MFs dip 3.17% in June

Steep fall
In May, heavy inflows were witnessed due to surplus liquidity in the system.
The industry asset base for June stands at Rs 4,00,842.12 crore.

Our Bureau

Mumbai, July 3

The assets under management (AUM) of the mutual fund industry witnessed a sharp decline in June, a drop of 3.17 per cent from May, as per the data released by the Association of Mutual Funds in India.

In May, the industry had witnessed a record surge in the assets, with the industry crossing the Rs 50,000 crore-mark. The heavy inflows then were on account of surplus liquidity in the system, as call rates had dipped below one per cent and Fixed Maturity Products of mutual funds had gathered sizeable amounts of assets.

With liquidity getting back to normal, the money, which was earlier parked in liquid funds of very short durations by banks and other institutions, has flown out of the fund industry, contributing to the drop in assets.

The industry asset base for June stands at Rs 4,00,842.12 crore from Rs 4,13,968.65 crore in May.

Asset base

Of the total 32 asset management companies, 15 have witnessed a fall in asset base with ICICI Prudential Mutual Fund witnessing the steepest fall in AUM by Rs 7,089.24 crore or 13.98 per cent. This is followed by Birla Sun Life Mutual Fund, which recorded a 17.68 per cent drop in AUM by Rs 4,194.13 crore.

Reliance Mutual Fund, which gained Rs 713.53 crore in June at Rs 59,857.01 crore, continued to be the fund house with highest AUM for the fourth consecutive month. Following Reliance MF is ICICI Prudential MF at Rs 43,613.76 crore, UTI MF at Rs 39,031.87 crore, HDFC MF at Rs 35,629.81 crore and Franklin Templeton MF at Rs 26,469.44 crore.

DSP Merrill Lynch MF recorded the highest growth in asset base by Rs 900 crore or 7.59 per cent at Rs 12,753.29 crore. Benchmark MF witnessed a growth of Rs 781.94 crore in asset base followed by Tata MF, which saw an increase of Rs 755.19 crore in AUM.

The latest entrants in the fund management space, AIG Global Investment Group Mutual Fund and JP Morgan MF recorded assets at Rs 1,100.69 crore and Rs 824.77 crore, respectively, for the first time.

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