The Hindu Business Line : Marginal inflow into equity funds

Equity funds have had a marginal outflow of Rs 17 crore in October 2003, with sales at Rs 2,218 crore and redemption at Rs 2,235 crore. The quantum of inflows into income funds is also on a lower scale in October than in the preceding months.

The assets under management by mutual funds at the end of October was Rs 1,26,726 crore, a 12 per cent increase over the levels of a year ago.

Sales were Rs 52,377 crore and redemption Rs 49,739 crore in October. The scale of inflows and outflows are more than double the levels that prevailed in October 2002. The net inflows were Rs 2,638 crore.

Prudential ICICI Mutual, Franklin Templeton and HDFC Mutual continue to be the top three among private sector funds in terms of assets under management. UTI Mutual continues to hold the top slot.

SBI Mutual Fund plans to launch an open-end income fund that is targeted at institutional investors. Magnum Institutional Income Fund opens for subscription in the initial offering period on November 17 and closes on November 21. The minimum investment amount is Rs 50 lakh. There is no entry and exit load. The fund would invest only in debt instruments.

The assets under management of SBI Mutual Fund have crossed the Rs 5,000-crore mark. This represents a significant improvement in the fortunes of the fund, which, about three years ago, appeared to be out of the radar of investors. With a clutch of income products and improvement in the performance of most of its equity funds, helped by the bullish phase in stock prices, the fund house now appears to have a healthy asset base.

JM Mutual is the latest to unveil a fund that targets non-resident Indians (NRIs). The fund christened JM Pravasi Bandhu Fund would invest in equities and be open for sale and repurchase during specified interval periods. Last week, Reliance Mutual had announced a fund targeted at NRIs.

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