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Thursday, April 09, 2009

Erosion in asset of Liquid and Income funds pull down MF total assets

MFs total AUM fell 17.96% in March 2009

The mutual fund (MF) industry had seen a fall of 17.96% in total asset under management (AUM) to Rs 4.17 lakh crore as on 31 March 2009 from Rs 5.08 lakh crore as on 28 February 2009. The Average Asset Under Management (AAUM) of MFs fell 1.53% to Rs 4.93 lakh crore for the month of March 2009 compared with Rs 5.00 lakh crore in February 2009. AAUM of fund of funds (FoFs) was Rs 698.30 crore in March 2009.

Association of Mutual Funds in India (AMFI) has released monthly data of the industry for March 2009. The MFs has launched twenty-two schemes in various categories in month of March 2009. Fifteen schemes were from close-ended income category; three from open-ended income category, one open-ended equity fund, one fund in open-ended Exchange Traded Fund (ETF) category, and two funds in ELSS segment in March 2009. These funds have mobilised Rs 4,854 crore.

Liquid funds had a highest fall of 29.00% in its total assets in March 2009. Income funds had a drop of 23.96% in March 2009. While, the gainers were ELSS –Equity funds, equity funds, gilt fund in March 2009 over February 2009.

Equity Funds

Total AUM of equity funds increased by 6.61% to Rs 95817 crore as on 31 March 2009 from Rs 89874 crore as on 28 February 2009, as equity benchmark indices surged in March 2009. BSE Sensex gained 9.19% to 9708.5 and the S&P CNX Nifty rose 9.31% to 3020.95 in March 2009. However, equity funds witnessed a net outflow of Rs 3 crore in March 2009. Equity funds contributed 23% to total AUM in March 2009 more than 18% in February 2009.

Income Funds

Income funds are categorized into three types: open-ended, interval funds and close-ended funds. Total AUM of income funds fell 23.96% to Rs 1.97 lakh crore in March 2009 over February 2009. Income funds recorded a net outflow of Rs 62,381 crore in March 2009 as against net inflow of Rs 19,933 crore in February 2009. Share of assets of income funds was 47% in March 2009 to total AUM, less than 51% in February 2009.

Liquid Funds

Liquid funds recorded a fall of 29.00% to Rs 90594 crore in its total AUM in March 2009 compared with February 2009. It recorded a net outflow of Rs 36,991 crore in the month of March 2009.

Gilt Funds

AUM of gilt funds rose 4.53% to Rs 6413 crore in March 2009 from Rs 6135 crore in February 2009. Gilt funds had net inflow of Rs 482 crore.

Other Funds

ELSS-Equity funds witnessed net inflow of Rs 547 crore with a rise of 11.65% in its total assets. Gold ETFs had net outflow of Rs 23 crore, its total AUM slipped 5.76% to Rs 736 crore in March 2009 over Rs 781 crore in February 2009. The total AUM of other ETFs plummeted by 18.32% in March 2009. However, Balanced funds and Fund of Funds investing overseas recorded a rise in assets by 3.26% and 5.51%, respectively.

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