Assets under management of mutual funds move north in December
ELSS poised for more inflows: Expert.
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Of 37 funds, 17 have registered an increase in their asset base, while an equal
number reported a decline.
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Our Bureau
Mumbai, Jan. 2 The New Year seems to have begun on a positive note for the
mutual fund industry, as the assets under management (AUM) have increased by
four per cent in December, reversing the earlier trend of declining AUM.
Data released by AMFI show that the AUM of the mutual fund industry stand at Rs
4,18,336 crore as on December end, compared to Rs 4,02,029 crore in November.
Of 37 fund houses, 17 have registered an increase in their asset base, while 18
reported a decline.
Goldman Sachs and Religare AEGON mutual funds have still not started to report
the asset base.
The top mutual fund house by asset size, Reliance Mutual Fund reported an
increase in asset base by 3.5 per cent. HDFC logged a 5.6 per cent rise. UTI
mutual fund gained 10 per cent and ICICI Prudential won 13 per cent.
MAJOR LOSERS
Major losers include Edelweiss Mutual Fund, whose asset base fell by more than
53 per cent in December. The assets under management of Mirae AMC fell by over
35 per cent during the same period.
SHORT-TERM RALLY
While there is not much money flowing into equity schemes, it is the
mark-to-market gains that boosted the AUM to some extent, said a fund manager
with Sundaram BNP Paribas Mutual Fund.
There might be a short-term rally in the equity markets, but it is unlikely to
sustain. Inflows in the equity schemes might be very small for at least the
first half of this year, he said. The benchmark index Sensex rose by more than
six per cent during December.
Money flow would have happened in most category schemes, said Mr Badrish
Kulhalli, Senior Fund Manager-Debt, Principal PNB Asset Management.
Fixed income schemes
Some fund managers said that though significant flow was coming into fixed
income funds, equity schemes might fare well as retail investors might choose
to invest at lower levels.
Equity schemes might be getting some inflows owing to bottom-fishing by some
investors as also liquid schemes from investors who have excess liquidity but
less risk appetite, said Mr Kulhalli.
Equity-linked savings schemes would notice substantial inflows in the coming
months, said Mr Parijat Agrawal, head of fixed income, SBI Mutual Fund.
The mood among fund managers appears upbeat. Retail investors are coming back
into the mutual fund space through investments in gilt and income funds also,
said Mr Rakesh Goyal, Head-Distribution, Bonanza Portfolio
http://www.thehindubusinessline.com/2009/01/03/stories/2009010351231000.htm
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