UTI Mutual Fund might lose the tag of the largest fund house of the country, as its peers are catching up fast. Year 2006 saw the AMC's market share decline to 11.73 per cent by the end of 2006 from 12.68 per cent last year to Rs 38,108.5 crore, with Reliance Mutual Fund tiptoeing on its heels as its assets swelled by a massive 143 per cent to Rs 36,928.5 crore. Not only has the latter breezed past Prudential ICICI to become the second largest fund house of the country, it has come very close to dethroning UTI from the top slot.
With NFO successes like Reliance Equity that mopped up Rs 5,790 crore, Reliance Mutual Fund's market share increased to 11.36 per cent in December 2006 from 7.63 per cent in December 2005. In other words, the fund house has moved swiftly from fifth position in terms assets under management to become the second largest AMC of the country.
Prudential ICICI Mutual Fund (market share of 10.25 per cent), HDFC Mutual Fund (9.22 per cent) and Franklin Templeton Mutual Fund (7.22 per cent) are the other fund houses figuring among the top five.
Of the 30 asset management companies (AMC) in India, as many as 23 saw their assets under management decline in December 2006. The biggest hit was taken by Lotus India Mutual Fund, which regressed by 33.35 per cent. LIC Mutual Fund lost the maximum amount - Rs. 4,871.54 crore over the month.
The situation didn't look so bad when we compared the asset size over the year, with only five AMCs losing money. The biggest laggard amongst them was Sahara Mutual Fund, which saw its assets decline by 59.8 per cent!
Among the gainers, Deutsche Mutual Fund led the pack with its assets growing at 172.4 per cent during 2006. This was primarily on the back of the 19 funds (majority of which were FMPs) that the AMC launched over the year. However, the AMC remains relatively small, ranked 17th in terms of assets under management.