HOME         WEBSITE         SUBSCRIBE           E-GREETINGS   
                               

Friday, January 08, 2010

Total assets of MF declined by 19.05% in December 2009

Income and Liquid Funds recorded highest outflow 

The mutual fund (MF) industry registered a fall of 19.05% in total asset under management (AUM) to Rs 6.65 lakh crore as on 31 December 2009 from Rs 8.22 lakh crore as on 30 November 2009. The decline in total asset during was largely due to huge outflow on account of income and liquid funds.
Average Assets under management (AAUM) of MF reduced by 1.62% to Rs 7.94 lakh crore in December 2009 compared with Rs 8.07 lakh crore in November 2009, according to the data released by the Association of Mutual Funds in India (AMFI). AUM of fund of funds (FoFs) stood with Rs 1043 crore in December 2009. Mutual Funds were net sellers of Rs 1761.90 crore in the equity market and net buyer of Rs 2221.30 crore in debt market in the month of December 2009.

Association of Mutual Funds in India (AMFI) has released monthly data of the industry for December 2009. The industry has launched 10 schemes totally out of which, eight schemes belong to income fund, one scheme in ELSS- equity and one Fund of funds categories in month of December 2009. The new funds launched have mobilized around Rs 1286 crore for the period.

The income funds registered the highest drop of 28.16% during December 2009. The liquid funds took the second place registering fall of 20.64% in the total assets. The fall in income and liquid funds are largely on account of redemption pressure courtesy, advance tax payments for quarter ended December 2009. While the top two gainers were gold ETF and ELSS- equity registering increase of 6.04% and 4.18% respectively.

The MF industry recorded the net outflow of Rs 157204 crore in December 2009 against the inflow of Rs 45124 crore in November 2009.

Equity Funds

The total asset of equity funds has increased by 2.62% to 1.75 lakh crore as on 31 December 2009 from Rs 1.70 lakh crore as on 30 November 2009, as equity benchmark indices showed increase in December 2009. The Bombay Stock Exchange's Sensex and National Stock Exchange's Nifty gained 3.18% and 3.36%, respectively, in December 2009.

The equity funds witnessed a net outflow of Rs 2185 crore and redemption of Rs 6232 crore in the month of December 2009. However the weightage of the equity funds towards the total assets of the industry increased to 26% in December as against 21% in November 2009.

Income Funds

Income funds, which can be categorized into three types open-ended, interval funds and close ended funds, have witnessed the net outflow of Rs 140789 crore in December 2009 compared to inflow of Rs 37649 crore in November 2009. The income funds recorded the redemption of Rs 3.72 lakh crore as against Rs 1.89 lakh crore in November 2009. Total asset of income funds plunged by 28.16% to 3.60 lakh crore December 2009 as against Rs 5.02 lakh crore in November 2009. This led to the decline in Income funds AUM weightage dip to 54% as against 61% in November 2009.

Liquid Funds

Liquid funds also recorded outflow in the month of December 2009 compared with inflow in November 2009. The total asset declined by 20.64% to Rs 80102 crore in its total AUM in December 2009 compared with November 2009 which dipped by 3.18% in total AUM. It recorded the net outflow of Rs 14267 crore in December 2009. Liquid funds also witnessed redemption of Rs 5.53 lakh crore as against Rs 6.02 lakh crore in November 2009.

Gilt Funds

AUM of gilt funds fell marginally by 0.19% to Rs 3609 crore in December 2009 from Rs 3616 crore in November 2009. Gilt funds had net inflow of Rs 12 crore and redemption of Rs 552 crore for December 2009.

Other Funds

ELSS-Equity Funds witnessed net inflow of Rs 113 crore and increased by 4.18% in its total assets. Gold ETFs registered net inflow of Rs 152 crore and its total AUM increased by 6.04% to Rs 1352 crore in December 2009 over Rs 1275 crore in November 2009. The total AUM of other ETFs declined by 11.73% in December 2009 while the Fund of Funds recorded a rise of 2.51% in its assets. Assets of balanced fund have increase of 1.12% in December 2009.
Posted by

Blog Archive

____________________________________________________________________________________________

Disclaimer - All investments in Mutual Funds and securities are subject to market risks and uncertainty of dividend distributions and the NAV of schemes may go up or down depending upon factors and forces affecting securities markets generally. The past performance of the schemes is not necessarily indicative of the future performance and may not necessarily provide a basis for comparison with other investments. Investors are advised to go through the respective offer documents before making any investment decisions. Prospective client(s) are advised to go through all comparable products in offer before taking any investment decisions. Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the fund will be achieved. Information gathered & material used in this document is believed to be from reliable sources. Decisions based on the information provided on this newsletter/document are for your own account and risk.


In the preparation of the material contained in this document, Varun Vaid has used information that is publicly available, including information developed in-house. Some of the material used in the document may have been obtained from members/persons other than the Varun Vaid and which may have been made available to Varun Vaid. Information gathered & material used in this document is believed to be from reliable sources. Varun Vaid however does not warrant the accuracy, reasonableness and/or completeness of any information. For data reference to any third party in this material no such party will assume any liability for the same. Varun Vaid does not in any way through this material solicit any offer for purchase, sale or any financial transaction/commodities/products of any financial instrument dealt in this material. All recipients of this material should before dealing and or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice.


Varun Vaid, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material. All recipients of this material should before dealing and/or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice. The investments discussed in this material may not be suitable for all investors. Any person subscribing to or investigating in any product/financial instruments should do soon the basis of and after verifying the terms attached to such product/financial instrument. Financial products and instruments are subject to market risks and yields may fluctuate depending on various factors affecting capital/debt markets. Please note that past performance of the financial products and instruments does not necessarily indicate the future prospects and performance there of. Such past performance may or may not be sustained in future. Varun Vaid, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation in the financial instruments/products/commodities discussed here in or act as advisor or lender / borrower in respect of such securities/financial instruments/products/commodities or have other potential conflict of interest with respect to any recommendation and related information and opinions. The said person may have acted upon and/or in a manner contradictory with the information contained here. No part of this material may be duplicated in whole or in part in any form and or redistributed without the prior written consent of Varun Vaid. This material is strictly confidential to the recipient and should not be reproduced or disseminated to anyone else.


Varun Vaid also does not take any responsibility for the contents of the advertisements published. Readers are advised to verify the contents on their own before acting there upon.


Published Credits goes to following sources & all the mentioned sources as footer below the published material- Bloomberg, Valueresearch Online, Capital Market, Navindia, Franklin Templeton, Kitco, SBI AMC, LIC AMC, JM Financial AMC, HDFC AMC, The Hindu, Business Line, Personal FN, Economic Times, Reuters, Outlook Money, Business Standard, Times of India etc.