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In March this year, when the equity market — as measured by the S&P BSE Sensex — was up 10.2 per cent, equity assets of JM Mutual fell ₹2,780 crore or 40 per cent over that of the previous month.
Poor performance For Religare Invesco, the percentage fall was relatively lesser (25 per cent) with its assets falling ₹622 crore over the month of March.
According to market sources, poor equity performance could have been the cause of redemption at JM Mutual — while for Religare Invesco, investors could have been concerned over the recent change in management.
Earlier this month, NYSE-listed global investment management firm — Invesco — had raised its shareholding to 100 per cent, leading to the complete exit of Religare Enterprises from the asset management business.
Rapid exit Two equity schemes of JM Mutual — JM Arbitrage Advantage and JM Equity — saw maximum fall in equity assets. The asset size of its flagship scheme JM Arbitrage Advantage shrunk by ₹2,366 crore — which led to halving of its assets. In case of Religare Invesco Mutual Fund, investors made rapid exit from its schemes — Religare Invesco Contra (₹571 crore) and Religare Invesco Business leaders (₹175 crore).
Interestingly, Religare Invesco Contra — a top performer among equity funds — saw its assets fall during the month. In the past, the assets of mutual funds have seen a shuffle with the entry and exit of investors. The assets under management of the mutual fund industry fell by ₹94,873 crore, according to data provided by NAV India, a mutual fund tracker.
While equity assets were up by ₹34,120 crore, debt and cash holdings fell by ₹84,458 crore and ₹59,404 crore, respectively. To a larger extent, the rise in equity assets of the industry is the result of appreciation in NAVs.
And it being the end of the financial year, a number of corporate houses were seen redeeming investment in liquid assets, in order to pay advance tax to the government.
Usually, at the end of March, debt assets take a knock, only to bounce back a month later.
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