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AUMs On The Rise

The mutual fund industry saw a rise in the overall AUM in January, but a few AMCs witnessed a fall as well

We have heard and referred to the proverbial adage 'Old is Gold' a lot and that seems to be the mantra followed by investors in these turbulent times. The overall sentiment prevailing in the Indian capital markets at the moment is one of mistrust and ambiguity. And in such a scenario, it seems like investors are relying on the old warhorses of the Indian mutual fund industry.

Apparently, the older fund houses are the ones that have seen the highest inflow of money in the month of January 2009. Reliance Mutual Fund topped the list, with inflows of Rs 5,960.38 crore. Following it were ICICI Mutual Fund with an inflow of Rs 5,637.83 crore, Birla Sun Life with an inflow of Rs 5,591.68 crore, HDFC with an inflow of Rs 4,663.28 crore, LIC with an inflow of Rs 4,332.04 crore and UTI with Rs 3,613.23 crore.

Overall, the new year started with positive news. The first month saw the assets under management (AUM) of the fund industry rise by 9.43 per cent, witnessing an overall inflow of Rs 39,793 crore. The total AUM of the industry stood at Rs 4.62 lakh crore as against the December AUM of Rs 4.21 lakh crore. Out of the 35 functional fund houses, 22 witnessed an upsurge in their AUM while the rest shed their assets.

The top two positions remained intact as Reliance Mutual Fund and HDFC Mutual Fund continued to be the biggest fund houses with an AUM of Rs 76,168.48 crore and Rs 51,420.73 crore respectively. The third place was taken over by ICICI Mutual Fund from UTI Mutual Fund, with the AUM of Rs 47,540.29 crore. Interestingly, the inflow in these three fund houses contributed 41 per cent of the total inflow in the industry in January.

On the other side of the coin, HSBC Mutual Fund turned out to be the biggest loser shedding its AUM the most. Its total outflow accounted to Rs 392 crore at the end of the month. Benchmark, JM, Morgan Stanley and ING were the other fund houses who's AUM fell drastically.

In percentage terms, seven fund houses witnessed a double digit rise in their AUM. LIC Mutual Fund managed to be at the top again, witnessing a 30 per cent rise in its AUM with an inflow of Rs 4,332.04 crore. The next two biggest gainers in the list were IDFC Mutual Fund and Deutsche Mutual Fund with 28.92 per cent and 18.88 per cent rise in their AUMs respectively.

There were five fund houses that witnessed a double digit fall in their AUM. Edelweiss Mutual Fund dropped the most witnessing a fall of 59 per cent. Bharti AXA followed by shedding 25 per cent, Benchmark shed 16.35 per cent, Morgan Stanley shed 15.60 per cent and Mirae 14.77 per cent.

Though the assets have increased as compared to last month, the average AUM of the industry in January 2009 is still down one-fifth as compared to the assets in January 2008. This shows that the industry hasn't yet recovered from its Great Fall of 2008. But this is the highest jump since October 2007 when the assets had risen by 15 %.