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MF Assets Fall 12.31%

The recently-on-a-high MF industry faced a setback in the month of June

It was widely reported that there was a jump in the industry’s average assets for June. The total average assets under management (AAUM) for the month went up by 4.92 per cent to reach Rs 6.69 lakh crore compared to Rs 6.38 lakh crore in May.

However, the month-end numbers coming out of AMFI now, reveal that in the later half of the month there were substantial withdrawals from the industry. The data shows that month-end assets were down by 12.31 per cent in June at Rs 5.82 lakh crore from Rs 6.64 lakh crore in May.

This has created a piquant situation where AAUM is showing a rise but the month-end figures have fallen. The difference in the month-end and average figures is because of a rise in assets in the initial part of June, while in the later half there were large scale withdrawals, primarily from income and liquid schemes.

These withdrawals were mainly due to corporates redeeming their funds for payment of advance tax, which is always done on the last month of every quarter. In March also the industry saw a close to 18 per cent drop in month-end asset figures for the same reason. By taking the average of daily assets under management the withdrawals have been smoothened out over the month while it is showing so starkly in the month-end figures.

It was not just one way traffic though, as three new entrants (NFOs) in the debt segment brought respectable inflows -- Baroda Pioneer Treasury Advantage Fund, ICICI Prudential Medium Term Plan and Ultra Short Term Plan together garnered a total of Rs 459 crore.

Meanwhile, if one talks about equity schemes, then they were bolstered by a lot of new money pouring in too. They registered net inflows of Rs 1,493 crore. However, this does not include the big Reliance NFO (Infrastructure Fund) which reportedly garnered Rs 2,350 crore.

Mutual Funds AUM - June 30, 2009
Mutual Fund Schemes - Category  Net Inflow / Outflow (Rs Cr)  Assets (Rs Cr)
Income -51,021 284,930
Equity 1,493 142,814
Balanced 41 15,660
Liquid / Money Market -34,378 111,215
Gilt -20 5,480
ELSS - Equity -11 18,229
Gold ETF 27 844
Other ETFs 46 898
Funds of Funds (FoF) Investing Overseas -114 2,609
Total  -83,937  582,679