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Thursday, April 02, 2009

MF's AUM fell by 1.53% in Mar 09



HDFC MF records highest inflow

Mutual fund industry has witnessed fall in Average Asset Under management (AUM) in March 2009, which recorded rise for the consecutive three months from December 08 to February 09. The AUM of the industry has decreased by 1.53% (an outflow of Rs 7686.81 crore) to Rs 4.93 lakh crore in March 2009 compared with Rs 5.00 lakh crore in February 2009. AUM of funds of funds (FoFs) stood at Rs 698.29 crore in March 2009. The depletion in the AUM is due to huge redemption pressure during the financial year-end, mainly in liquid funds, where banks and corporates invest at a large scale during the year. As the financial year comes to a close banks start withdrawing money from liquid funds to manage their capital adequacy ratio. Capital adequacy ratio is the ratio of a bank's capital to its risk and it determines the capacity of the bank to meet liabilities and other risks.

In the fortnight ended March 13, banks' investments in mutual fund instruments have come down by Rs 6,145 crore to Rs 83,964 crore as against Rs 90,109 crore in the previous fortnight. However this money will again route towards investment in mutual funds from April 2009.

Also though March is a tax planning month and huge investments come in equity linked tax saving schemes (ELSS) this year the investment in this category is expected to register a setback on account of volatile equity markets.

The net inflow in all ELSS schemes put together in the month of February 2009 was Rs 284 crore, much lower than Rs 776 crore in the same period in the last fiscal year. The trend in January was also similar. In January, the mutual fund industry through its ELSS schemes, have received a net inflow of Rs 303 crore against a whopping inflow of Rs 961 crore in January 2008. The net inflow in ELSS schemes during the whole of present fiscal year too has been very subdued. In the first 11 months of the present fiscal year, the mutual fund industry has received a net inflow of Rs 2,421 crore, as against Rs 4,080 crore in the corresponding period last fiscal year. The month of March 2008 saw net inflow of Rs 2071 crore in this category.

Out 35 fund houses posted the Average AUM, 12 fund houses have recorded inflow and remaining 23 fund houses posted outflow in March 2009. Baroda Pioneer MF has reported the impressive rise of 30% in March 2009 compared with February 2009.

Among the top three funds, only HDFC recorded an inflow in March 2009. Reliance Mutual fund continued to be in the first position with AUM of Rs 80962.94 crore in March 2009. However, its AUM has dropped by 0.81% in March 2009 over February 2009. HDFC MF retained its second position with the average AUM of Rs 57956.45 crore a rise of 1.92% compared with the month of February 09 and ICICI Mutual Fund stood with an AUM of Rs 51432.50 crore and it fell by 3.89% in March 2009 over February 2009.

The other top mutual funds, in terms of AUM, UTI MF fell by 0.96% to Rs 48754.17 in March 2009. Birla Sun Life MF has decreased by Rs 1459 crore (3.01%) to Rs 47096.23 crore in its AUM and SBI MF also witnessed a fall of 4.50% to Rs 26382.68 crore in March 2009 over February 2009.

HDFC MF recorded the highest inflow in AUM of Rs 1092.06 crore, while Tata MF recorded the highest outflow of Rs 2269.87 crore; it was down by 11.76% in March 2009 over February 2009.

In the category of fund houses maintaining AUM between Rs 10000 -20000 crore, IDFC Mutual Fund has recorded a rise of 5.61% to Rs 14362.20 crore in the month of March 2009 over February 2009. Kotak Mahindra has gone up by 5.46% to Rs 18204.04 crore, while Tata MF went down by 11.76% to Rs 17029.87 crore in March 2009.

In the category of MFs maintaining AUM between Rs 10000 - 1000 crore Baroda Pioneer MF went up by 30.90% to Rs 1132.01 crore and Religare has risen by 11.05% to Rs 6022.84 crore in March 2009 over February 2009, while Benchmark was down by 27.59% to Rs 1068.57 crore.

The fund houses with relatively smaller corpus having AUM less than Rs 1000 crore has registered the fall in their AUM, except Bharti AXA MF and Sahara MF. Bharti AXA MF was up by 5.22% to Rs 196.52 crore and Sahara MF went up by 2.98% to Rs 145.93 crore, While Edelweiss registered a fall of 27.34% to Rs 22.28 crore in March 2009 and Taurus MF's AUM declined by 5.59% to Rs 208.36 crore in March 2009 compared with February 2009.


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