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Wednesday, April 08, 2009

MF's AUM slips 1.53% in March 2009


Tata Mutual Fund records highest outflow

Assets under management (AUM) of mutual fund (MF) industry gets back in the reverse gear with a fall of 1.53% in March 2009 over February 2009 due to redemptions faced by short-term debt funds, and liquid funds that invest in short term instruments. The MF industry had seen recovery from December 2008 to February 2009 on rising investments in income funds and equity linked savings schemes (ELSS). However, it could not able to sustain the rise 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 corporate 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.

AUM of fund of funds (FoFs) was Rs 698.30 crore in March 2009.

Of the 35 mutual funds, 23 registered a fall in AUM in March 2009 over February 2009 and rest 12 showed a rise in their AUM. There were 12 fund houses with AUM above Rs 10000 crore. Except four of them other eight fund houses recorded net outflow in March 2009 compared with February 2009.

The top three funds witnessing a rise in the AUM included Baroda Poineer Mutual Fund (30.90%), Religare Mutual Fund (11.05%), and Fortis Mutual Fund (5.84%). These top three fund houses that showed a rise in their AUM have less than Rs 10000 crore of asset size.

Despite of a drop of 0.81%, Reliance Mutual Fund continued to be the largest fund house with a corpus of Rs 80962.94 crore in March 2009 over February 2009. It registered net outflow of Rs 664.15 crore in March 2009 over February 2009. HDFC Mutual Fund continued as the second largest fund house with AUM at Rs 57956.45 crore in March 2009 — a growth of 1.92% in AUM over February 2009. It had registered net inflow of Rs 1092.06 crore in March 2009 from February 2009.

ICICI Mutual Fund stood at third position with an AUM of Rs 51432.50 crore – a fall of 3.89% in March 2009 over February 2009. The public sector UTI Mutual Fund stood at fourth position with posting AUM of Rs 48754.17 crore with net outflow of Rs 470.77 crore in March 2009 over February 2009.

The other top mutual funds, in terms of AUM, were Birla Sun Life Mutual Fund (Rs 47096.23 crore), SBI Mutual Fund (Rs 26382.68 crore) and LIC Mutual Fund (Rs 23092.37 crore) in March 2009. The assets of Birla Sun Life Mutual, SBI Mutual Fund, and LIC Mutual Fund decreased by 3.01%, 4.50% and 4.85%, respectively.

23 fund houses had seen outflow in March 2009. Tata Mutual Fund recorded the highest outflow of Rs 2269.87 crore in March 2009 followed by ICICI Prudential Mutual Fund with a net outflow of Rs 2081.57 crore. Birla Sun Life Mutual Fund and SBI Mutual Fund recorded outflow of Rs 1459.77 crore and Rs 1244.13 crore, respectively.

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 and Kotak Mahindra has gone up by 5.46% to Rs 18204.04 crore, while Tata Mutual Fund and Franklin Templeton Mutual Fund fell 11.76% and 1.04% in March.

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

Smaller players with AUM less than Rs 1000 crore comprised Edelweiss Mutual Fund (Rs 22.28 crore), Quantum Mutual Fund (Rs 56.76 crore), Sahara Mutual Fund (Rs 145.93 crore), Mirae Mutual Fund (Rs 162.08 crore), Escorts Mutual Fund (Rs 181.53 crore) and Bharti AXA Mutual Fund (Rs 196.52 crore).



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