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Mutual Funds Assets Cross Rs 6 trillion

Indian Mutual funds register brisk growth despite the slump in performance of the equity and the fixed income funds

In a month when all the bonds funds gave modest return and most of the equity funds return remained in red other than some periphery categories like Pharma, IT and Gold ETF, this industry has created a record by crossing the milestone in managing assets over Rs. 6 trillion (Rupees 6 lakh crore), according to latest release by AMFI (Association of Mutual Funds in India) the trade body. The assets have grown by 6.94 percent in May compared to 6.20 percent in April. In last one year the markets size of mutual fund industry has also grew by more than 44%.

Top five players accounted for 51% of the total assets managed by Indian mutual funds. Reliance, the largest player retained its dominant position by increasing its assets by 3.23 percent in past one month to Rs 98431 crore. Followed by ICICI Prudential with Rs 59060 crore, HDFC Mutual Fund at Rs 56107 crore, UTI with Rs 54652 crore and Birla Sun Life at Rs 41423 crore.

Overall standing has remained same with few exceptions. UTI, the fund oldest fund company was able to grow its assets by 6.13% but still it slipped to rank number four in terms of total assets managed. While HDFC Mutual Fund moved up the rank from fourth to third place by adding Rs 4631 crore in May. The other exception was LIC Mutual Fund which has grew by 28.49 percent in past one month compared to 17.69 percent in April, 2008. This moves it to 11th position up from 13th position.

Interestingly, seven fund lost assets worth Rs 1100 crore this month. The key losers were Franklin Templeton losing Rs 575 crore, ABN AMRO with Rs 242 crore, DBS Chola Rs 141 crore and Benchmark with Rs 139 crore less under management this month.