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MF AUM Jumps to Rs 7.5 Lakh Crore

The fund industry chalked up another high, though the effect may not last long

The mutual fund industry crossed another peak with ease in the month of August as its assets jumped to over Rs 7 lakh crore, which is a historic high. The retail investor, however, was again put in the shade, as most of the new money that has been collected by the industry came from institutional investors like banks, which looked to park their money with funds for a temporary period as credit off-take has been extremely slow. Even corporates have looked to do the same with some excess cash in their hands.

Out of the month’s gain of Rs 59,984 crore, almost Rs 50,000 crore was contributed just by the liquid plus funds. The inflows from institutional investors in these schemes were the primary cause of the spike. Aside from the sluggish credit demand, another reason for the banks parking money in MFs was that the government securities were expected to be volatile due to rising yields.

While the chance of this money retreating soon is high as businesses increasingly start approaching banks for loans as the season of consumerism starts in earnest in India, yet for the moment, this is celebrations time for the MF industry.

The total assets under management (AUM) of the industry grew by 8.71 per cent to reach a high of Rs 7.50 lakh crore, which is a change of Rs 59,984 crore from the July figure, according to the data provided by the Association of Mutual Funds in India (AMFI). The assets of the industry for July grew by 2.80 per cent, at Rs 6.90 lakh crore.

Looking at categories separately, it is clear that liquid funds registered the maximum percentage change of 27.04 per cent from their July assets, while for Arbitrage funds, the increase was 7.43 per cent. The diversified equity funds too increased their assets, but by a very narrow margin -- 6.65 per cent.

The fund house that registered the highest percentage change in August was Edelweiss MF. Its assets grew by 40.7 per cent, or Rs 28 crore, to reach Rs 95.6 crore. The storyline was shared by Baroda Pioneer MF which also saw a percentage change of as high as 34.79 per cent, or Rs 1,397 crore. Its assets reached Rs 5,414 crore in August. However, these are some of the smallest fund houses in India and even small amounts of change in their collections will add up to huge percentage changes overall.

Therefore, when we speak in absolute terms, the biggest increase in August was notched up by HDFC MF, which gained Rs 10,508 crore over July figures, pushing total assets to Rs 93,874 crore.

The biggest fund house of them all is still Reliance MF even though it gained the second-highest amount after HDFC MF, of Rs 8,979 crore, or a gain of 8.29 per cent.

While LIC MF and UTI MF gained in August too, yet they remained at the third and fourth positions with collections of Rs 7,570 crore and Rs 6,674 crore respectively. Their total assets added up to Rs 41,039 crore and Rs 73,925 crore respectively.

However, it wasn’t a month of universal gain for all in the industry as 9 fund houses saw a fall in their assets in terms of percentage.

 

Assets: Categories
     Assets (Rs Cr)  Change
Category    Jul-09    Aug-09    Rs    %
Debt: Liquid Plus Inst   178,477   218,983   40,506   22.70
Debt: Liquid Plus   34,693   44,072   9,380   27.04
Equity: Diversified   133,943   142,852   8,909   6.65
Debt: Floating Rate Long-term   20,151   23,788   3,637   18.05
Debt: Medium-term Institutional   9,037   10,900   1,863   20.61
Equity: Tax Planning   18,518   19,689   1,172   6.33
Debt: Floating Rate Long-term Inst   5,855   6,747   892   15.24
Equity: Speciality   12,197   12,990   794   6.51
Hybrid: Monthly Income   3,743   4,490   747   19.95
Debt: Short-term   14,523   15,236   713   4.91
Hybrid: Arbitrage   6,027   6,475   448   7.43
Hybrid: Equity-oriented   7,095   7,499   404   5.69
Hybrid: Debt-oriented   10,329   10,680   351   3.40
Debt: Floating Rate Short-term Inst   2,524   2,822   297   11.77
Debt: Short-term Institutional   12,324   12,384   60   0.49
Equity: Technology   349   393   44   12.75
Equity: Index   1,427   1,471   43   3.05
Equity: Banking   1,341   1,373   32   2.41
Gold ETF   860   889   29   3.42
Equity: Pharma   247   272   25   10.09
Hybrid: Asset Allocation   310   321   11   3.54
Equity: FMCG   92   97   4   4.81
Debt: Floating Rate Short-term   3,713   3,636   -77   -2.07
Gilt: Short-term   1,381   1,009   -372   -26.91
Gilt: Medium & Long-term   3,726   3,029   -697   -18.70
Debt: Medium-term   29,379   28,014   -1,365   -4.65
Debt: Ultra Short-term Institutional   99,751   98,208   -1,543   -1.55
Debt: Ultra Short-term   34,871   32,397   -2,474   -7.10
Debt: Speciality   41,439   37,589   -3,851   -9.29
Total    688,322    748,306    59,984    8.71
 

 

Assets: Fund Houses
     Assets (Rs Cr)  Change
Fund House    Jul-09    Aug-09    Rs    %
HDFC Mutual Fund   83,366   93,874   10,508   12.60
Reliance Mutual Fund   108,334   117,314   8,979   8.29
LIC Mutual Fund   33,470   41,040   7,570   22.62
UTI Mutual Fund   67,252   73,926   6,674   9.92
Kotak Mahindra Mutual Fund   31,246   36,934   5,688   18.20
Birla Sun Life Mutual Fund   57,332   62,865   5,533   9.65
ICICI Prudential Mutual Fund   73,329   77,969   4,640   6.33
Religare Mutual Fund   12,240   14,744   2,504   20.46
IDFC Mutual Fund   22,709   24,855   2,147   9.45
Baroda Pioneer Mutual Fund   4,017   5,414   1,397   34.79
Fortis Mutual Fund   8,857   10,145   1,288   14.54
Franklin Templeton Mutual Fund   27,630   28,867   1,237   4.48
JM Financial Mutual Fund   7,750   8,709   960   12.38
Sundaram BNP Paribas Mutual Fund   13,347   14,023   676   5.07
Deutsche Mutual Fund   14,309   14,624   316   2.21
Principal Mutual Fund   9,235   9,451   216   2.34
DBS Chola Mutual Fund   2,733   2,893   160   5.85
Taurus Mutual Fund   647   799   152   23.42
AIG Global Inv Grp Mutual Fund   1,797   1,888   91   5.06
Fidelity Mutual Fund   9,329   9,416   87   0.93
Morgan Stanley Mutual Fund   2,167   2,237   70   3.22
Canara Robeco Mutual Fund   7,854   7,892   38   0.48
Edelweiss Mutual Fund   68   96   28   40.70
Mirae Asset Mutual Fund   227   252   26   11.25
Bharti AXA Mutual Fund   263   283   20   7.59
Sahara Mutual Fund   207   218   10   5.02
Quantum Mutual Fund   68   70   3   4.16
Escorts Mutual Fund   205   199   -5   -2.54
Benchmark Mutual Fund   1,219   1,213   -6   -0.53
Shinsei Mutual Fund   203   174   -29   -14.50
JPMorgan Mutual Fund   3,700   3,629   -72   -1.93
SBI Mutual Fund   34,158   34,056   -102   -0.30
Tata Mutual Fund   20,594   20,490   -104   -0.50
ING Mutual Fund   2,315   2,200   -115   -4.97
DSP BlackRock Mutual Fund   17,262   17,142   -121   -0.70
HSBC Mutual Fund   8,884   8,405   -479   -5.39
Total    688,322    748,306    59,984    8.71