VR Logo

Predictably, Funds Shrink in November

The Indian fund industry's contraction continued in November

Due to heightening concerns over the global financial crisis and continuing panic amidst the Indian investors, the market continued its downward trend in the month of November also. During the month, while the Sensex witnessed a dip of 7.10 per cent, the Assets Under Management (AUM) of the mutual fund industry also dipped sharply. The total fall in the industry’s size accounted for 6.72 per cent when the total AUM stood at Rs 4.02 lakh crore as against the September AUM of Rs 4.3 lakh crore.

Reliance Mutual Fund witnessed the biggest fall in its AUM in absolute terms, with an erosion of Rs 3278 crore but it still managed to maintain its top position. Franklin Templeton shed its assets to the tune of Rs 2574 crore which was the second highest fall after Reliance. HDFC Mutual Fund maintained its second position intact and recorded a fall of 2.68 per cent in its AUM.

Only two fund houses have recorded a rise in their assets last month. Tata Mutual Fund has been the biggest gainer with an impressive gain of Rs 537 crore (3.16 per cent). The second gainer, UTI Mutual Fund’s assets have risen marginally by Rs 74 crore (0.19 per cent) while it has taken over the third position from ICICI Prudential. The worst decline in AUM was witnessed by Mirae Asset Mutual Fund with a massive drop of 69.22 per cent.

The fall in the AUM of mutual funds has been just one third of the fall witnessed last month which was more on the debt side. In order to ease the redemption pressures that came mostly from the corporates in wake of the liquidity crisis, the regulatory bodies, SEBI and RBI took pro-active measures that came as a sigh of relief to the fund houses. These measures also helped to raise the confidence of investors who were deeply horrified by the on-going crisis. But the current slowdown in the economy and the confirmed U.S recession is still a reason of worry in the investors’ minds.


AMC Assets
Rank  Fund House  AUM Nov (Rs Cr)  AUM Oct (Rs Cr)  % Change
1 Reliance 67,815.9 71,093.7 -4.6
2 HDFC 44,262.0 45,479.4 -2.7
3 UTI 38,358.1 38,283.6 0.2
4 ICICI Prudential 37,080.5 39,209.0 -5.4
5 Birla Sun Life 31,916.4 34,203.3 -6.7
6 SBI 23,168.1 24,727.0 -6.3
7 Franklin Templeton 19,619.6 22,193.7 -11.6
8 Tata 17,537.0 16,999.9 3.2
9 Kotak Mahindra 14,669.2 15,121.9 -3.0
10 DSP BlackRock 13,384.3 14,868.8 -10.0
11 LIC 11,684.3 13,186.7 -11.4
12 HSBC 11,015.0 12,632.9 -12.8
13 Sundaram BNP Paribas 9,628.2 10,533.4 -8.6
14 IDFC 8,700.8 10,260.3 -15.2
15 Deutsche 6,862.3 8,373.5 -18.0
16 JM Financial 6,749.3 8,075.7 -16.4
17 PRINCIPAL 6,170.0 6,995.3 -11.8
18 Fortis 5,996.3 7,277.7 -17.6
19 Fidelity 5,805.2 6,484.4 -10.5
20 Lotus India 4,556.3 5,457.7 -16.5
21 Canara Robeco 3,687.3 3,985.2 -7.5
22 ING 3,527.8 4,468.1 -21.0
23 Benchmark 2,781.7 3,412.9 -18.5
24 Morgan Stanley 1,920.8 2,155.1 -10.9
25 JPMorgan 1,754.9 1,879.1 -6.6
26 AIG Global Investment Group 1,504.3 1,688.9 -10.9
27 DBS Chola 1,121.5 1,193.9 -6.1
28 Bharti AXA 409.8 470.2 -12.8
29 Mirae Asset 309.0 1,004.2 -69.2
30 Taurus 223.7 338.8 -34.0
31 Escorts 190.4 191.0 -0.3
32 Sahara 167.6 171.3 -2.2
33 Edelweiss 164.8 228.0 -27.7
34 Quantum 55.4 59.8 -7.5
35 Baroda Pioneer 37.1 42.9 -13.4