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Ups and Downs of AUM Meter

All is not hunky dory on the AUM front.

In 2008, investors and fund managers both felt the heat of a bear market. The mutual fund industry had to battle with Assets Under Management (AUM) taking a big hit, due to share prices crumbling as well as investors pulling out their money. So we looked at the AUM trend over the past five months - December 2008 to April 2009, to see if there has been any change.

The good news is that in 2009, the assets of the mutual fund industry have been increasing on a month-on-month basis, with the exception of March when there was a marginal fall of 1.54 per cent.

In January, February and April, assets of the industry grew by 9.43 per cent, 8.66 per cent and 11.75 per cent, respectively.
So which were the players who actually witnessed a rise and which ones, a fall?

Edelweiss Mutual Fund and Benchmark Mutual Fund stood out by witnessing a consistent monthly fall in their AUM. Interestingly, Baroda Pioneer Mutual Fund has been amongst the few that have seen a continuous monthly rise (see Looking at Consistency).
HSBC Mutual Fund seems to have hit a rough patch. Barring the month of March 2009, the fund has been witnessing a fall in its AUM. From Rs 10,144.81 crore (December 2008), it is now Rs 9,321.28 crore (April 2009). Its market share during this period has fallen from 2.40 per cent to 1.69 per cent.

ING Mutual Fund shares the same predicament but its good month was February 2009. With assets of Rs 2,539.68 crore, its market share is 0.46 per cent.

Where market share is concerned, Kotak Mahindra Mutual Fund is the only player to witnesses a continuous rise in market share over these five months (see The Leaders).

ING Mutual Fund, AIG Global Investment Group Mutual Fund and Benchmark Mutual Fund have seen their market share continuously decline.

On the other hand, Franklin Templeton, Reliance Mutual Fund, Fortis Mutual Fund, DSP BlackRock Mutual Fund and HSBC Mutual Fund have seen their market shares decline every month, barring a blip in March 2009.

The Leaders
  Market Share % (Rank)
  Dec-08  Apr-09
Reliance Mutual Fund 16.64 (1)  16.01 (1)
HDFC Mutual Fund 11.08 (2) 11.57 (2)
UTI Mutual Fund 10.08 (3) 9.87 (4)
ICICI Prudential Mutual Fund 9.93 (4)  10.16 (3)
Birla Sun Life Mutual Fund 8.67 (5) 9.39 (5)
SBI Mutual Fund 5.93 (6) 5.59 (6)
Franklin Templeton Mutual Fund 4.60 (7) 3.77 (9)
Tata Mutual Fund 4.16 (8) 3.52 (10)
Kotak Mahindra Mutual Fund 3.43 (9) 3.95 (8)
LIC Mutual Fund 3.41 (10) 4.73 (7)

Looking at Consistency
  Dec-08  Apr-09  Current
  (Rs/crore)  (Rs/crore) Market Share  
The Losers      
Benchmark Mutual Fund 2,275.30 939.11 0.17%
Edelweiss Mutual Fund 77.22 14.57 Negligible
The Gainers      
HDFC Mutual Fund 46,757.45 63,880.63 11.57%
Kotak Mahindra Mutual Fund 14,471.38 21,812.86 3.95%
IDFC Mutual Fund 8,878.55 16,041.80 2.91%
DSP BlackRock Mutual Fund 13,356.25 15,945.02 2.89%
Baroda Pioneer Mutual Fund 36.99 1,882.01 0.34%
Fortis Mutual Fund 5,204.20 6,467.17 1.17%
JP Morgan Mutual Fund 204592.00% 2,776.86 0.50%
Month-on-month rise/decline in AUM from December 2008 to April 2009