Comments
Lower redemptions and increasing investor confidence led to 50 per cent of the mutual fund houses seeing an increase in AUM for the quarter ended March 31, 2011, according to the quarterly data on the Association of Mutual Funds in India (AMFI) Web site.
“There were not many redemptions this quarter. Also, there is a lot more clarity and visibility about the India story than there was in the quarter before that,” said Mr Sadanand Shetty, Vice-President and Senior Fund Manager – Equity, Taurus mutual fund.
The average AUM of the industry stands at Rs 6.58 lakh crore. However, this excludes the AUM data of SBI Mutual Fund which had still not been updated (for January-March 2011) on the Website.
Typically March sees a lot of outflows in the form of advance tax payments and a subsequent reduction in the AUM.
As on December 31, the average monthly AUM was Rs 6.26 lakh crore, which increased to Rs 6.91 lakh crore in January 2011 and to Rs 7.07 lakh crore in February.
However, fund managers believe that the March numbers should be good as this quarter saw less redemptions.
“The large flush of redemptions is behind us. The grassroot mobilisation of investors has been much better leading to higher retail participation this quarter,” said Mr Sanjay Sinha, CEO, L&T Mutual Fund.
Among the top five mutual fund houses, ICICI Prudential Mutual Fund, Birla Mutual Fund and UTI Mutual Fund have seen the highest increase in their AUMs. ICICI's AUM was up by 11. 6 per cent, Birla Sun Life's by 10.4 per cent and UTI's AUM by 2.8 per cent.
It must be noted here that in the last quarter ended December 2010, Birla Sun Life MF had lost about 15 per cent of its AUM. The top five fund houses account for about 60 per cent of the AUM of the industry.
Peerless mutual fund saw the highest increase of 82.2 per cent, followed by IDBI mutual fund at 71.8 per cent and Axis mutual fund at 30.2 per cent. Of the larger fund houses, Kotak Mahindra mutual fund, DSP Blackrock mutual fund and Tata mutual fund have seen a 16.8, 10.6 and 8.7 per cent increase in their AUMs, respectively.
The largest decline in AUM was recorded in case of Sahara Mutual Fund, which fell by 43 per cent. LIC Mutual Fund, which recently announced its tie-up with Nomura and renamed its mutual fund house as LIC Nomura mutual Fund, saw its asset base shrinking by 40 per cent. Among the bigger fund houses Franklin Templeton saw an AUM fall of 3.95 per cent.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.